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Braunger Foods to close; 30 employees to be impacted
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Braunger Foods to close; 30 employees to be impacted

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Progress 2017 Braunger Foods

Braunger Foods is shown at its new Sioux City location at 2101 Murray St. on Feb. 23, 2017. The grocery distributor is closing Sept. 7, and roughly 30 employees are expected to be impacted.

SIOUX CITY -- A longtime Sioux City food distributor will be closing up shop in September. 

According to am Iowa Worker Adjustment and Retraining Notification (WARN) posting, Braunger Foods, a subsidiary of US Foods, will close on Sept. 7. Some 30 employees will be impacted. 

Braunger, a wholesale distributor of meat and other food products to restaurants, has operated in Sioux City for nearly 130 years. It was purchased by Rosemont, Illinois-based US Foods last summer.

The purchase included The Thompson Co. of Grand Island, Nebraska, and Variety Foods of Sioux Falls. At the time of the deal, no jobs were expected to be lost. 

In a statement, US Foods spokesperson Sara Matheu said 14 employees will be leaving the company or applying for new roles at the Sioux Falls facility, while 16 others will go directly to Sioux Falls. The company had done a "careful evaluation of our footprint," and decided to transfer Sioux City operations to Sioux Falls.

"Our customers will not experience any disruption in their service. It is business as usual for our customers as we shift operations to our Sioux Falls, South Dakota location," the statement read. 

Prior to the US Foods deal, Braunger poured $4.3 million into its facility at 2101 Murray St. The Thompson Company, the former parent company of Braunger, said early last year that the newly renovated space was one reason they decided to keep operations in Sioux City. 

The firm received about $400,000 in local and state tax incentives when it moved to the 75,000-square-foot Murray Street facility, which was hailed as a way to retain jobs as Braunger mulled leaving Sioux City. 

Editor's note: An earlier version of this story misstated the amount of tax incentives Braunger received when it moved to its Murray Street facility.

Copyright 2018 The Sioux City Journal. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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