Love’s Bakery, which has been filling Hawaii stomachs for 169 years, will lay off more than 230 employees and close at the end of next month after suffering from growing pandemic-related losses.
The company said it is seriously delinquent in rent, unable to qualify for additional federal Paycheck Protection Program funds and has seen major delays from mainland suppliers for ingredients and parts for aging equipment.
The company also said it was not able to secure additional capital, according to a notice to state and federal agencies about the mass layoff.
“Love’s local management is committed to closing its doors in a responsible manner. We wish to thank all of our employees, suppliers, customers, friends, neighbors, and business partners for their loyalty and support,” it said.
Chuck Choi, attorney for Love’s Bakery, called the company a “casualty of the pandemic.” He said sales in 2020 were down more than 20%.
The company received $2.8 million in federal stimulus money early in the pandemic but could not secure additional funds.
“Rather than continue operating in the face of mounting losses, the board made the decision to shut down operations,” Choi said in a statement.
The news came as a shock to generations of Hawaii residents who grew up on the company’s locally made loaves and treats.
Love’s Bakery, started in 1851 by a Scottish baker who specialized in “re-baking” bread from sailing ships, survived some of the biggest crises to hit Hawaii, including the bubonic plague in the early 1900s and both world wars.
But the coronavirus did it in.
“We have worked diligently to cut expenses, to maintain our market share and to remedy our operational difficulties, however under the current business environment we are no longer able to continue operations,” Love’s Bakery said in a statement.
During the pandemic, residents may have been buying more bread for their pantries. But the company saw a significant drop in sales from commercial buyers, including hotels and restaurants.
Love’s sells loaves, buns, bagels and English muffins. It also distributes under different brands.
Over the decades, the company changed hands several times. In 2008, Love’s Bakery once again became Hawaii-owned when a local management company purchased First Baking Co.
The company would have celebrated its 170th anniversary in July.
Its early locations were on Nuuanu Avenue and Iwilei. The company moved to Kapahulu Avenue in 1948, then to its current home on Middle Street.
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