Hy-Vee shutters 2 production facilities

Hy-Vee announced Thursday that it is closing two production facilities in Iowa on June 24, impacting 461 employees.

The facilities prepared fresh-cut produce as well as items under its Mealtime prepared foods brand. The Iowa-based grocer has decided to transition production of these items back into its stores beginning next month, the announcement noted.

Hy-Vee opened both production centers in 2018. The fresh commissary located in Ankeny spans 150,000 square feet and produces sandwiches, salads, bakery items and take-and-bake pizza for Hy-Vee stores. The second facility, located in Chariton, is 48,000 square feet and prepares fresh-cut fruits and vegetables to be shipped directly to stores.

Hy-Vee's decision to move these operations back into its stores comes from a "renewed focus on improving the quality of its fresh offerings," according to the press release. The company noted that this change will improve product freshness, quality, availability and customer service as well as bring more employees into stores.

Hy-Vee said it will offer assistance to all impacted employees - 129 work at the Chariton facility and 332 work at the Ankey location - and is organizing hiring events "to place as many employees at Hy-Vee stores as possible."

The company will retain ownership of both facilities. Moving forward, Hy-Vee plans to explore the possibility of using the locations for manufacturing shelf-stable items or repositioning the sites for different uses, the announcement stated.

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Aaron Moody is a sports and general reporter for the News & Observer. Here is a second sentence for the bio because it will probably be longer than this. Maybe even longer I don't know. Support my work with a digital subscription

This story was originally published April 25, 2025 at 5:23 PM