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Significant portion of business closed at Maines Paper and Food Service, internal memo states

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CONKLIN, N.Y. (WBNG) -- Less than two months after the company told some employees they were being let go in a "temporary plant layoff" in March, Maines Paper and Food Service Inc. told employees Sunday that a large portion of the business "will be permanently closing", according to an internal letter obtained by 12 News.

According to the letter, the company terminated employees who are not needed in the "winding down" of the operation of the "Broadline" business, located at 101 Broome Corporate Pkwy in Conklin.

The Broadline division of the company helps deliver food and other services to restaurants and other foodservice businesses.

Several restaurants, including PS Restaurant in Vestal, shared the news on their Facebook page.

Upon hearing the devastating news today, we want to wish all of our friends at Maines Paper and Food the best of luck....

Posted by P S Restaurant on Monday, May 11, 2020

The letter, dated May 10, 2020 from The Maines Leadership Team, stated the company looked to find a buyer for the Broadline business and other sources of financing to continue operation. However, the sale soured in March, in part, due to the coronavirus pandemic and economic hardships.

Maines also stated discussions with another buyer "make clear" that a deal was not in reach. The company also said it was unsuccessful in landing financing through the federal government's paycheck protection program.

The letter ends by providing employees with information on how to find jobs and healthcare.

Maines declined to comment to 12 News Monday regarding the letter.

The letter comes less than two months after the company issued a WARN notice to 340 employees on March 20 that they were being laid off temporarily due to "Unforeseeable business circumstances prompted by COVID-19".

WBNG

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