Diamond Foods to close snack manufacturing facility in US

US-based snack manufacturer Diamond Foods plans to close its facility in Indiana, US, which will lead to a loss of nearly 100 jobs.

The move follows Diamond Foods’ decision to halt the production of certain items under the Emerald brand snack range.

Following the closure, the plant’s production will be shifted to the company’s facility in Stockton, California.

The company gained ownership of the Indiana facility after it acquired Harmony Foods in 2006 as part of its strategy to expand its presence in the eastern part of the country.

Meanwhile, Diamond Foods, which is in the midst of restating its financial statements following reports of improper accounting, has announced its plans to restate the second and third quarters of fiscal 2010 to adjust walnut cost estimates.

Earlier, the company said that it would be restating financial statements for fiscal years 2010 and 2011, all interim periods of fiscal 2011 as well as the fourth quarter of 2010.

Diamond’s interim CFO Mike Murphy said the company is close to finalising the statements and looks forward to filing its restated results.

The company must file its reports by 7 December 2012 and hold its annual shareholder meeting by 14 January 2013 in order to stay listed on the Nasdaq.

Diamond Foods is still reeling from the effects of an accounting scandal, which surfaced in February 2012 after the company’s audit committee revealed that it had improperly accounted millions of dollars in payments to walnut growers, an estimated $20m in 2010 and $60m in 2011.

The scandal led to the departure of Diamond’s CEO and CFO and the termination of an agreement to acquire snack brand Pringles from Procter & Gamble.

In May 2012, private equity firm Oaktree Capital Management agreed to invest $225m in Diamond Foods, allowing the snack maker to rebuild its balance sheet, meet funding requirements and support future growth plans.

Diamond Foods produces culinary nuts and snack products under brands such as Diamond of California, Emerald, Kettle and Pop Secret, and it owns processing facilities in California, Indiana and Alabama.

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Image: Diamond Foods plans to restate the second and third quarters of fiscal 2010 to adjust walnut cost estimates. Photo courtesy of Diamond Foods.