Yelloh, formerly Schwan's, cuts 90 delivery centers, 750 employees nationwide

The food delivery business formerly known as Schwan's Home Delivery is laying off 750 employees nationwide and closing 90 delivery centers in a major retreat for the famed Minnesota company.

Yelloh — the name of the 72-year-old delivery company since a rebranding last year— will now serve just 18 states with its iconic yellow trucks but continue delivering to the rest of the country via UPS.

"Facing economic headwinds, rising business costs and the post-pandemic world, our teams across the country have worked valiantly to transform our company into a modern category leader," the Bloomington-based company said in a news release this week. "Despite those efforts, and like many retail businesses, we must now close locations and face a difficult reality."

The closures will take effect beginning Dec. 8.

The company will scale down deliveries, which once spanned the Lower 48, to: Delaware, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Michigan, Minnesota, Missouri, New York, Ohio, Pennsylvania, South Dakota, Texas, Vermont, West Virginia and Wisconsin.

"This is a heartbreaking decision for our company because we cherish our customers, our employees and the special role our team members play in our local communities," the company said in a statement. "Concentrating our high-touch delivery service in fewer locations — in states that are the foundation for our 70-year-old company — is the best path forward for Yelloh."

The first home delivery for Schwan's — 14 gallons of ice cream sold near Marshall, Minn., — took place in 1952.

In 2018, the Schwan family sold a 70% share of its business to Korean firm CJ CheilJedang for $1.8 billion. The family kept the Schwan's Home Delivery business, however, and rebranded it a year ago as Yelloh, a nod to those yellow home delivery trucks.

Yelloh announced an undisclosed but "significant" investment from a private equity partner in March.