Malley’s Chocolates is laying off 300 workers the coronavirus pandemic forces store and factory closures at would usually be a busy season for the 85-year-old candy company.
The Northeast Ohio-based chocolatier and candy-maker temporarily closed all 22 of its storefronts because of the virus, said CEO Mike Malley, as well as its production facility. Employees received pay through March 31.
“We had to make the tough decision to lay them off because we just don’t see where this goes and when we can reopen our stores and get our factory back open,” Malley said.
A limited staff is still working at the distribution and call centers to fulfill online orders. A notice on the company’s website warns customers of potential shipping delays on those orders due to high demand.
Closures brought on by the coronavirus are hitting Malley’s Chocolates at what is normally its busiest season, Malley said. The first third of the year provides roughly 40 percent of the company’s annual retail revenue, he said.
“Even if our factory was open, without the retail centers to sell through, we’d be making candy that we probably wouldn’t be able to sell,” Malley said.
The company plans to bring employees back on when the coronavirus is under control, he said.
“We are in a good place, but without that amount of revenue coming into our stores, it did necessitate a tough decision about laying folks off,” he said.
The company is looking into federal and state economic assistance, Malley said, including provisions in the CARES Act recently passed by the Senate.