Awrey Bakery sold, brand saved

On the side of an Awrey semi-trailer
The trailer was gone shortly after this photo was taken.
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 This little-noticed sign on the the north wall of the Awrey building has seen better days. It is unknown if it will be repaired,  removed or replaced by the new owners.

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In the fall of 2012, facing seemingly insurmountable financial trouble, Awrey Bakeries said it would lay off most of its 200 employees unless a buyer could be found for the 103-year-old company by mid-February.

As hopes for finding a buyer dimmed, the company discontinued retail bakery operations and began dismantling equipment which was to be sold at an auction scheduled for February 20th. On February 19th, in what was literally a last-minute reprieve, privately-held Minnie Marie Bakers of the Midland-Bay City, Michigan area came forward with a purchase offer just eight minutes before the final sale deadline.

New CEO Jim McColgan said owner Ron Beebe will change the Livonia bakery's name to Minnie Marie Bakers, Inc., but will "keep the Awrey brand name alive." McColgan also said they intend to rehire more than 150 laid off workers and reopen the 218,000 square foot facility within thirty days.

Sales and marketing director John Awrey, who is a member of the founding family, said he is “pleased that the new owner will preserve the Awrey’s brand and tradition of fine products."

"They know Michigan is a good place to do business and will expand our focus to develop a local supply chain of farmers, millers and producers of Michigan-grown wheat, soybeans, sugar and other ingredients," Awrey said.

When the bakery reopened on March 11th, about 50 former employees had been returned to work. McColgan said the number of workers they can rehire will depend on sales.


Read more about Awrey in this previous post.


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Awrey gone awry

Awrey Bakery

Livonia, Michigan

The Awrey Bakery and outlet store in Livonia, Michigan are still operating, but this landmark sign has been sadly neglected. Much of the neon is out and the windmill vanes no longer turn.

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Awrey Bakeries got its start in 1910 when Fletcher and Elizabeth Awrey left Canada and moved to Detroit looking for work in the auto industry.

To help make ends meet, Elizabeth Awrey began baking breads and pies in her wood-fired oven and selling them to neighbors, which her three sons — Elton, Wilbur and Thomas — would deliver. As business boomed, the Awreys opened a retail outlet in 1914 on Tireman and Epworth near West Grand Blvd. in Detroit, where the firm's first "volume baking" began.

The next four decades saw Awrey expand from a home-based business into a large enterprise with commercial bakery facilities, home delivery, and 91 stores by 1940. After WW II Awrey's growth resumed aided by the increasing popularity of supermarkets. By 1950 the company had 120 locations, including both individual stores and supermarket concessions, and its home delivery service. Increased success required increased capacity, and a new bakery and headquarters was built in Livonia in 1967. In 1969 the entire operation was moved there and the Tireman plant was closed.

By 1990 Awrey's food service business accounted for 70% of total revenues, with retail sales contributing one-quarter and contract baking making up the remainder. The company had 700 food service distributors and a national network of brokers that distributed its products to institutional accounts such as hospitals, schools, and restaurants. The retail line was distributed in southeastern Michigan to stores that ranged from major supermarket chains to small independent grocers.

Unfortunate changes in management and strategies led to a decline in business which resulted in Chapter 11 bankruptcy in 2005. The sale out of bankruptcy in 2008, enabled Awrey to repay its creditors at 98 cents on the dollar from proceeds.

Awrey survived the turmoil and continued operations. The brand celebrated its 100th anniversary in 2010.


UPDATE:  Financial trouble again threatened Awrey's existence in late 2012, but a last-minute purchase by Minnie Marie Bakers saved the 103-year-old brand from oblivion in February, 2013. Read more here.



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