H&am is cutting 1,100 jobs at its frozen food and grocery stores and shutting down its frozen products business, the retailer said Thursday.
The news comes just one week after the U.S. Department of Agriculture said H&ams frozen foods business is in serious need of a $50 million capital improvement.
H&s frozen food business is a subsidiary of the American grocery chain, which owns the H&AM brands.
The company said in a statement that it is working closely with its suppliers to secure a long-term financing plan that includes the sale of its frozen foods, which include H&AMS frozen fruits and veggies, H& frozen meat products and H&M frozen cheeses.
The decision to sell the frozen foods and grocery business comes at a time when many frozen food companies are struggling with high commodity prices and dwindling consumer demand for its products.
The move by the company marks the first time the retailer has shut down a food and frozen food product business.
The company did not immediately respond to a request for comment.
In November, the company announced that it was selling the H &B frozen food unit to Walmart for about $25 billion.
The retailer said the sale includes H&ing food products including H&ammel ice cream, H &am canned ice cream and H &ams frozen meats, and Hampons frozen eggs, but it declined to detail any additional details about the sale.