Bob Evans Farms shuts sausage facility in Richardson, Texas

Bob Evans Farms, a US-based food service, processing and retail company, has reportedly closed its 50-year-old sausage manufacturing facility in Richardson, Texas, affecting more than 100 jobs.

The closure is part of Bob Evans’ strategy to manage production capacity within its foods business BEF Foods, and it comes as 5.1% stakeholder Sandell Asset Management, a private equity firm, urged the company to split.

Through BEF Foods, the company offers refrigerated side dishes, pork sausage, refrigerated and frozen convenience food items under the Bob Evans and Owens brands.

Bob Evans Farms gained control of the Richardson plant in 1987, with the acquisition of Owens Country Sausage.

The facility produces convenience and breakfast foods such as cooked sausage links, patties and tacos as well as pork sausage in tubes, links and patties.

BEF Foods president Mike Townsley said that the closure allows the company to address continuing challenges in food production, particularly record-high prices for sows, and while these decisions are not easy, they are necessary.

"We are working to assist our employees through this difficult time, and we are grateful for their service to our company," Townsley added.

Bob Evans said that the employees affected by the closure may be moved to the Sulphur Springs plant, where the company is currently expanding its operations.

In September, Sandell recommended to Bob Evans’ board of directors three potential strategies to achieve increased shareholder value – separating BEF Foods through a sale or spin-off; unlocking the substantial real estate value embedded in restaurant properties through a sale-leaseback transaction; and implementing a self-tender with most of the proceeds from the first two recommendations.

Bob Evans Farms owns and operates Bob Evans Restaurants.

As of July, the company had 560 restaurants in 19 states primarily in the Midwest, mid-Atlantic and Southeastern US.

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Image: The Richardson plant produces convenience and breakfast foods such as cooked sausage links, patties and tacos. Photo courtesy of Robert Cochrane.