MARSHALL, Minn — Yelloh, the frozen food home delivery service known for decades as Schwan's, is ending operations.
On Monday, Yelloh announced the company is closing operations and will "permanently park its iconic yellow delivery vehicles."
The 72-year-old frozen food operation was founded by Marvin Schwan in Marshall, Minnesota. Schwan's grew to become a nationwide company, delivering frozen meals to homes.
Schwan's Home Delivery changed its name to Yelloh in March of 2022, intending to attract a larger customer base in a competitive food delivery market. The name change was not a magic bullet - sales continued to slip, and the company opted to close multiple locations over the past year.
In December, KARE 11 reported 90 delivery centers across the U.S. were being shuttered. This summer, several western Wisconsin locations ceased operations. Industry analysts point to a changing market and home delivery apps like DoorDash and Shipt.
With the news that Yelloh is ending operations, the company announced that 176 workers in Minnesota are being laid off.
"It’s with heavy hearts that we made the difficult decision to cease operations of Yelloh,” said CEO Bernardo Santana in a press release. “We are thankful to our many loyal customers and hard-working employees for everything they have done to support us. I am deeply grateful for our employees’ tireless and bold efforts, and our customers’ dedication. It has been our utmost pleasure and honor to serve our customers their favorite meals and frozen treats.”
According to Yelloh officials, the company won't immediately cease operations but will instead wind down to closure over several weeks. The last day customers can order products through them will be Nov. 8, with Nov. 22 being the last day of employment for impacted workers, according to the WARN notice.
Michael Ziebell, a board member and 22-year Schwan's/Yelloh executive, said in a press release that closing the company was a heartbreaking decision.
“Our concern is now for our employees and caring for them as we all come to terms with the fact that this business – that served millions of families and provided a livelihood for thousands over the decades – has regrettably run its life cycle.”