End of an era
75¢
Friday, July 1, 2011
Yarnell’s closes its doors
n Ice cream factory was Searcy mainstay — Page 2A n Our view — Page 4A
Help for former Yarnell’s employees
n To file a claim for unemployment benefits: Arkansas.gov/ esd/index.htm n Trucker opening: Pepsi Beverage, Batesville; contact Rhonda Hughey, (870) 251-2519 n Trucker opening: Stallion Transportation Group, Beebe; contact Butch Rice, (800) 597-2425
Former Yarnell’s employees react to plant closing
Worker: ‘It caught us off guard’
By Warren Watkins warren@thedailycitizen.com What went on in the last hours of operation for a local factory is not entirely clear, but some witnesses are speaking out. Employees of Yarnell’s Premium Ice Cream Company were not offered more than pay for their last day’s work, according to statements made by company’s former workers. “At 2:45 a.m. we were called for a meeting,” said former Yarnell’s employee Marisela Castaneda while standing in the parking lot of the Arkansas Workforce Center in Searcy. “It caught us off guard.” Castaneda, who said she had worked for Yarnell’s for two years, said she was offered no post-employment benefits or even advice. “They are having financial difficulty,” Cataneda said she was told by Yarnell’s officials. A local radio station employee said the station began getting calls about 6 a.m. from Yarnell’s employees claiming
the factory had been shut down. Hershel Thompson was a truck driver for the company’s fleet service arm, a sister company to Yarnell’s located on a connected campus. “I was just told they discontinued operations and there was a possibility of a buyout early next week,” Thompson said, claiming the information came from Rogers Yarnell. “It’s going to hurt Searcy.” Re-education for former Yarnell’s employees will be different from other factory closings. The plant claimed to be the only ice cream plant in the state, so workers not hired by other ice cream makers in other states will have to be trained for a new profession. Two trucking companies are advertising for employees: n Pepsi Beverage, Batesville; contact Rhonda Hughey, (870) 251-2519 n Stallion Transportation Group, Beebe; contact Butch Rice, (800) 597-2425 For information on filing a claim for unemployment benefits, persons may visit the Arkansas Department of Workforce Services’ web page, Arkansas.gov/esd/index.htm.
Yarnell’s out of business
200 locals jobless
By Warren Watkins warren@thedailycitizen.com Yarnell’s Premium Ice Cream company in Searcy issued a press release early Thursday morning saying they have stopped production. The statement said the board of directors voted Wednesday to end production indefinitely for the privatelyowned company. The 200 employees were told as they arrived for work
they would be paid through every day worked but not beyond that.
“This has been an extremely tough year for the ice cream industry in general, and particularly to regional, independent manufacturers like ourselves,” said Christina Yarnell, chief executive officer of Yarnell’s. “We have examined many possible avenues to keep the company afloat — actively marketing the company to investors and strategic buyers, the majority of whom are undergoing the same financial distress we are. However, we’ve been unable Continued on Page 3A
Locals rush to purchase ice cream
Area fans snatch up favorite flavors
W
Mayor: Closure of company ‘devastating’ Yarnell’s was Searcy’s 6th-largest industrial employer
By Luke Jones ljones@thedailycitizen.com Mayor David Morris described the closure of Yarnell’s Premium Ice Cream Company Thursday as “devastating.” “I think it’s going to be a blow to Morris our economy, no doubt,” he said. “That’s 200-plus jobs suddenly ended, jobs that have been here for a long time. I cannot
remember Searcy, Arkansas, without Yarnell’s Ice Cream Company.” Searcy Regional Chamber of Commerce President Buck Layne said the loss will have an immediate and crushing effect. “Any time you have a plant like Yarnell’s, and have 200 employees lose their jobs, it has a negative effect on our community,” he said. “Our hearts go out to the employees.” “We’ll work pretty hard to get new jobs in,” said Reynie Rutledge, chairman of First Security Bancorp. “I really feel bad about Yarnell’s closing, it’s been an icon for the Continued on Page 3A
WEATHER
Today: Sunny. Highs in the upper 90s. Southeast winds 5 mph. Tonight: Mostly clear. Lows in the mid 70s. Southeast winds 5 mph. Vol. 157, No. 157 ©2011 The Daily Citizen
Lanette Freeman of Searcy and daughter Evie, 8, stock up on Yarnell's ice cream at Sexton Foods on Race Avenue late Thursday morning. News of the ice cream plant's closure Thursday morning brought ice cream fans out in droves to local grocery stores to purchase the product. Jacob Brower/jbrower@thedailycitizen.com
By Warren Watkins warren@thedailycitizen.com hen Rawley Freeman celebrates his 11th birthday party today, there will be something unique about the event: For what is believed to be the last time, fresh Yarnell’s ice cream will be served. Long a Searcy tradition, Yarnell’s ice cream will no longer be available after current stock runs out following the company’s surprise announcement Thursday that it was closing its doors. Across Searcy, Yarnell’s ice cream fans began to raid store freezers looking for the favorite flavors — or in some cases — any half-gallon container at all. Mark Richards, manager of Harp’s Food Stores, said he had noticed a marked increase in sales of Yarnell’s ice cream on Thursday after the announcement. At Sexton’s Food Store, Yarnell’s half-gallons were on sale three for $10 and customers were at times clogging the frozen food aisle to get a chance to dig through the case Continued on Page 3A
Yarnell’s issues statement concerning WARN law
Warren Watkins warren@thedailycitizen.com Yarnell’s Premium Ice Cream Company officials have issued a statement concerning why they did not provide a 60-day notice for the plant’s closure as required under the Worker Adjustment and Retraining Notification (WARN) Act.
The WARN notification, issued by Morris Buchanan, executive vicepresident of operation, said production will cease June 29 because it “has not been able to obtain the capital necessary to continue to operate and has not been able to find a buyer for the company as a going concern.”
INDEX LOCAL, 2A OPINIONS, 4A LIFESTYLES, 5A CALENDAR/OBITUARIES, 6A SPORTS, 1B CLASSIFIEDS, 5B
“
“Some employees will be receiving less than 60 days prior notice of the facility closure as a result of its unexpected failure to obtain business capital and sell the company as a going concern,” the statement said. The statement said there will be a brief phase-down of operations with Continued on Page 3A
Life is like an ice cream cone. You have to lick it one day at a time. Charles M. Schulz Cartoonist, 1922-2000
Contact us: 3000 E. Race, Searcy, AR 72143, (Phone) 501-268-8621, (Fax) 501-268-6277
”