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| NewsSaturday, April 26, 2008 8:42 PM CDT |
Bloomington Kathryn Beich office closing
BLOOMINGTON -- Kathryn Beich, the fundraising arm of a longtime Bloomington candy company, has been sold and its office here will close June 30. The sale will not affect the nearby Bloomington Nestle factory, which was separated from the fundraising division in the late 1990s. Plant Manager Carlos Cortez said the plant, with more than 500 employees, produces only a small amount of fundraising products. Khristina Clevenger, director of human resources at Kathryn Beich, said 37 office workers in Bloomington will be affected. The displaced employees will be offered a “generous severance package” as well as outplacement assistance such as career counseling services. The roughly 100 people who comprise the sales work force were hired Friday by Great American Opportunities, the Nashville company that purchased Kathryn Beich, Clevenger said. Company officials said the purchase brings together “two of the largest and most successful teams of professional fundraisers dedicated to school and non-profit fundraising.” Katydids and Golden Crumbles, popular Kathryn Beich brands, will become part of Great American Opportunities product line. “Great American Opportunities is committed to growing their business and the resulting scale of this purchase will strengthen their service to schools throughout the country,” said Michael Holzworth, president of Kathryn Beich Inc. Terms of the purchase were not released. Holzworth said the consolidation was driven in part by the need to counter several recent business challenges including rising commodity and energy prices. “This business decision was driven by marketplace conditions and is by no means a reflection on the performance of Kathryn Beich or its exceptionally committed and talented employees,” he said. Paul Beich started the Beich candy company in Bloomington in 1892. Kathryn Beich started selling her family’s confectionery products to Central Illinois organizations for fund-raising purposes in 1952. The company was sold to Nestle in 1984 and the name changed to Kathryn Beich Inc., a Nestle Co. In 1999, the manufacturing and fund-raising units were split and Nestle dropped the Beich name from the plant but kept it for the fundraising products. Lincolnshire Equity Fund II, a New York-based investment fund purchased the Beich fundraising company in 2002. Great American Opportunities is one of the nation’s oldest fundraising companies. It has more than 200 fundraising consultants and trainers and serves 48 states. It was founded in 1855 and has helped raise nearly $750 million for schools and non-profit organizations since 1975, according to the company. Reporter Phyllis Coulter contributed to this story. |
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