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Yarnell’s Ice Cream ceases operations, 200 jobs lost


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Updated: 7/01/2011 5:04 am Published: 6/30/2011 8:43 am

"A Family Tradition Since 1932" is no more.

"No warning. The plant just shut down," said now former-employee Josh Swanson just minutes after being handed his termination letter.

"Generations worked here and now it shuts down. It makes me wonder how many other Arkansas jobs are we gonna lose?" asked Billy Cantrell.

After years of working for the ice cream manufacturer, Cantrell is now signing up for food stamps.

"I've got a family. I've got four kids. How am I going to support my family?"

Cantrell is one of almost 150 people in Searcy handed termination letters Thursday morning.

Yarnell's is keeping one to two people on staff for the next couple of weeks just to help shut the plant down.

The Yarnell family says a tough year for the ice cream industry in general and the inability to obtain additional financing or a buyer put them out of business.

"Nobody had any warning at all," said Swanson. "I think that's just how it worked out. The plant didn't know it was coming either."

The company announced it is stopping production indefinitely and told its workers that they will be paid through every day worked, but not beyond that. About 75 percent of the company's workers are based at the Searcy headquarters. The rest are located throughout Arkansas, Tennessee and Mississippi.

Christina Yarnell, chief executive officer, said the company had considered other avenues for keeping the company afloat after "an extremely tough year for the ice cream industry in general."

"However, we've been unable to obtain additional financing from our lenders or locate a buyer, and have come to the difficult decision that the appropriate course of action is to shut our doors," she said in a statement released by the company.

The company said it has seen ice cream and related products decline over the past five years, and that regional ice cream manufacturers have also been damaged by rising prices in commodities such as cream, sugar and fuel.

Yarnell's has been in operation since 1932 and grew from a small family-owned operation to one that delivered ice cream throughout Arkansas, Missouri, Tennessee, Mississippi and Louisiana.

The company began with Ray Yarnell - Christina Yarnell's great-grandfather - and his wife and son counting themselves among the 13 employees that ran operations and made deliveries in four trucks.

Its first trucks were refrigerated with ice and salt, and the company's first electrically refrigerated truck was purchased in 1938.

Most of the ice cream first produced by Yarnell's was sold to drug stores that sold ice cream soda or cream sandwiches.

"Ceasing operations is heartbreaking because we have prided ourselves on keeping our roots in Arkansas, particularly Searcy," Christina Yarnell said.

The company even touted its local roots with its Arkansas-centric flavors. They included University of Arkansas Razorback themed offerings such as "Woo Pig Chewy" and "Hog Wild for Cookie Dough." In 2005, the company named its mint-chip ice cream for then-Gov. Mike Huckabee: "Hucka, Hucka Burnin' Love."

A spokesman for Gov. Mike Beebe, who represented Searcy as a state senator, said the governor was saddened by the news of Yarnell's closing. At its 75th anniversary celebration, Beebe reminisced about drinking vanilla milkshakes with Yarnell's ice cream at a corner drug store when he was a child.

"Of course the governor has a deep history with them too, since they're both from Searcy," Beebe spokesman Matt DeCample said.
DeCample said the Department of Workforce Services will help the laid off workers as they seek new employment.

The Yarnell's closing is the latest announcement of layoffs in Arkansas. Simmons Foods Inc. announced last week that it would eliminate 223 jobs at a slaughtering plant in Siloam Springs by August and move its remaining production to a neighboring facility in Decatur. Rhode Island-based United Natural Foods said earlier in June that it will lay off 225 workers after closing a plant in Harrison as part of an acquisition by another company.

Congressman Tim Griffin (AR-02) issued the following statement after learning the news:

“This is terrible news for the employees and their families who count on Yarnell's for their livelihood, for the Yarnell family who made their last name an iconic symbol of quality ice cream and for all Arkansans who have grown accustomed to opening the freezer to see Yarnell's ice cream waiting to be enjoyed. This is another reminder of how far we have to go to get our economy turned around and how important it is to enact policies that encourage private sector job growth.”
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The views expressed here do not necessarily represent those of FOX16 - Little Rock, AR News and Weather

danana - 7/1/2011 12:13 PM
0 Votes
I am sad for the employees that worked hard for the company. I am not sad for Christina or any of the Yarnells. They deserve what they get by the way they treated their employees, with no respect or regards to the hard work. I worked for a company that shut their doors and they had the respect for their employees to give notice. Yarnells didnt even give them notice and they are not even honoring the vacation time that the people earned. Wrong, so wrong!!!

BarryB - 6/30/2011 10:04 PM
3 Votes
I worked there for 16 years only to have the next generation come in with out a clue as to how to run a company, It was like handing the keys to your classic car to a 5 year old and expecting everything to work out. The only reason this company failed was due to greed and spending more than you make mentality, Luckily I had the sense to see this comming and got out last August but I still had many friends there that stayed so for them I wish them all the best, and for Christina Yarnell you got what you wanted Ceo of a company with absolutely no experience New BMW's every year a desk you could put your feet up on and watch all the little people try to try to keep it all together,So way to go may you never be in control of any other peoples lives again.

doris guest - 6/30/2011 5:53 PM
0 Votes
the best ever is the banana split,can't beat it... gosh i will miss it... need to go get some before it's all gone...

Butch54 - 6/30/2011 5:39 PM
1 Vote
Blame the President, Blame Walmart, why not blame the people that didn't make the right decisions. Remember riding in on 36 for years and seeing the factory. All the way back in the 60's. I sure will miss that great product. As for the down size it didn't bother me. I'll always pat more for the best.

womack 23 - 6/30/2011 4:26 PM
0 Votes
that just sucks for them folks that lost theyre jobs. But u can thank our pres for that.

Leatherneck - 6/30/2011 2:17 PM
1 Vote
I know for a fact that they had a deal with Wal-Mart and had a bunch of boxes produced and then Walmart didn't hold up their end of the deal leaving them and the producers with many many many boxes.Not to mention their regular inventory they had produced. It's amazing how people can run a privately owned business in the ground that had been in business for so many years. They tried to come up with too many flavors and screwed that up. If it ain't broke then don't try to fix it. They broke it now it sits broken.

movingonbaby - 6/30/2011 1:54 PM
3 Votes
Ya can't blame the Obama Administration for this!! But you can blame POOR MANAGEMENT!! I worked for the company a number of years and seen it coming: How can you keep a company afloat when your raw inventory was never correct, had extra product in warehouse and continue to pile more of the same product, waste wasn't managed correctly (we threw entirely to much product away) and don't mention DOWN TIME!! How in the world can you be down for 2-5 hours (per day) on something as simple as a printer!! Get people off the clock!! Man made footbaths (Chemical Waste) chemical stayed on even when the plant was down!! The list goes on and on So don't blame Obama this BLAME POOR MANAGEMENT!!

alfisher3 - 6/30/2011 11:50 AM
1 Vote
@jmscho: How is Yarnell business closing Obama's fault? Here I'll copy/paste this snip directly from the article: Sales of ice cream and related products have steadily declined over the past five years across the United States according to those at Yarnell's. Aggressive pricing from larger companies has made it more difficult for smaller companies to compete. I'm not pro Obama or anything but this is clearly not his fault.

jmscho - 6/30/2011 11:42 AM
3 Votes
Tim stand that ground!!!! We all can see how the Obama did his part, his administration is the cause and we are all feeling its effect. Sad to see a 75 year old American company close its doors. How American is good old fashion ice cream, guess if Washington had it there way it would be imported from Mexico, China, our anywhere else but in America.

alfisher3 - 6/30/2011 11:38 AM
1 Vote
Wow, the HomeStyle Vanilla will no longer be available. Believe it or not this is actually the only ice cream I really like. Ahh look like I'll be eating healthier sooner than expected. Hope the employees are not out of work for long and can recover soon. I agree w/ the other poster that it's ashame that large companies can get nearly a trillion dollars in bailout funds, but they can't help the smaller companies keep afloat?
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