Is Mikesells going out of business? Mikesells is going out of business after more than a century of making potato chips and other snacks in the Dayton region. The business recently revealed it would start shutting down operations at its Dayton location. Also, they start selling off its assets, leaving up to 100 employees needing new employment.
In a statement, the business explained that the choice was made to safeguard its reputation. So that it may continue to compete successfully in the market. It plans to transfer all of Mikesell’s trademarks and copyrights to another manufacturer of snack foods. The company did not provide a timeline for the changeover or closure. Let us view in detail about the business further in this article.
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About Mikesells
Mikesell’s Potato Chip Company is a privately owned firm based in Dayton, Ohio. It is a manufacturer of potato chips and other snack items. According to their website, they are the “oldest functioning potato chip firm in the United States.” In 1910, Daniel W. Mikesell founded Mikesell’s as a dried meat and sausage manufacturer. Nonetheless, the business quickly started making “Saratoga Chips.” In 1925, the brand “Mikesell’s” and its logo were selected.
Before making potato chips, the business started off by selling dried meat and sausage all across Dayton. Currently, the business produces and distributes a variety of snack foods. This includes potato chips, pretzels, corn products, pork rinds, and dips.
The 100th year of Mikesell’s as a potato chip brand was in 2010. Ohio’s Dayton is where Mikesell’s items are made. The same Dayton facility used when the company first started is now used to make potato chips. Mikesell’s goods can be purchased at retail stores in Ohio, Indiana, Kentucky, and Illinois. Additionally, they can be purchased online via the business’ website and delivered wherever outside of its retail zone.
On February 1, Mikesell declared that it had started to stop all operations. This included production and distribution while the company got ready to sell its assets. The liquidation procedure will start right away and last for a while.
Why do Mikesells go out of business?
Recently, as rumors ensued, company president Luke Mapp directed inquiries. He talked about the future of his organization with its public relations agency. Since it has been in business since 1910, Mikesell’s claims to be the nation’s longest-continuously functioning family-owned potato chip manufacturer.
As with all businesses, the firm has suffered from issues linked to recent inflation. Yet this most recent outbreak has been particularly severe. The pandemic-related supply chain issues worldwide, the conflict in Europe, and other factors caused issues. In a December 2022 interview, Mapp told a news source, “These are challenging times. Like every other firm, Mikesell’s is dealing with these difficulties.
At the time, Mapp stated that his business had three issues. They are retail product placement patterns, retiree pension liabilities, and inflation. Mapp was appointed president of the business by the board of directors in March 2020, just before the pandemic. Mikesell’s, as well as every other company’s, workforce was affected by COVID-19.
Also, the retail market is still evolving. Food producers used to be able to speak directly with grocery store management. Nowadays, grocery store choices are more likely to be deferred to corporate ones. They are typically shaped by software. It will determine which products should be prominently displayed to customers or on shelves.
According to Mapp, centralized purchasing based on “big data” decides which brands to highlight and at what price. But he claimed that those software programs don’t address local service, reward programs offered by a national brand, or cost benefits.
Mapp, who began his career as a sales analyst, stated, “We could enter a store here and build a connection with that store manager.” Now, the opportunity to do so has been removed. This is how Mikesell’s created its name. When asked about the future of the business, Mapp responded, “I’d like nothing else than to keep it alive another 110 years.”
Mikesell’s still had 10 to 15 corporate cars carrying snack goods in early December. They carried pretzels, puff corn, and chips in various flavors on their eight remaining business routes, despite having outsourced most of their distribution work to distributors. Also, the business owned three over-the-road long-haul tractor-trailers. As stated at the time, the company closed three distribution centers in Ohio a decade ago. This resulted in the loss of around 40 jobs.
The business is winding down its production, sales, and administration operations. According to the corporation, this is to go forward with an orderly liquidation of its assets.
Mikesells is closing its doors
The company had its roots in 1910. At that time, D.W. Mikesell and his wife ran a business out of two rooms on South Williams Street in Dayton. According to the firm’s site, Mikesell’s Potato Chip Company was founded after they had the chance to buy some potato chip machinery.
A corporate spokesperson says no interviews or more information will be provided. But the business stated on social media that 65 employees are affected. Also, many individuals claiming to work for Mike Sells announced the closure of the Dayton plant on social media.
Mikesell’s has declared that it plans to transition all of Mikesell’s brand and IP rights to another top-notch snack food manufacturer, effective immediately. This was said by the company in a statement. This move is to protect Mikesell’s brand so it can survive long-term in the market and keep moving forward.
The terms have yet to be set in stone. But they realize the need to maintain items on the market and are striving to enable the required talks for approvals. As a result, Mikesell’s products will be available at all times.
Conclusion
Mikesell’s business has been around for 113 years. Thus, it makes for one of the oldest potato chip businesses in the nation. Now it’s time to part ways. The Mikesell family and team would like to thank the community, customers, and partners for their love and support throughout the previous 112 years. This is according to Luke Mapp, president of Mikesell’s. The love from the fans, the friendships, and the victories along the journey will stick with their family the longest.