Bob Evans Farms, a US-based food company, has shut down its sausage production facility in Richardson, Texas, putting more than 100 jobs at risk.
The company said that its decision will allow its BEF Foods division to better manage production capacity within its foods business.
BEF Foods produces refrigerated side dishes, pork sausage and refrigerated and frozen convenience food products under the Bob Evans and Owens brands.
BEF president Mike Townsley said that the closure allows the company to address continuing challenges in food production, particularly record-high prices for sows, while these decisions are not easy, they are necessary.
"We are working to assist our employees through this difficult time, and we are grateful for their service to our company," Townsley added.
Established in 1963, the Richardson plant manufactures pork sausage in tubes, links and patties.
The Richardson plant closure comes as a shareholder urges the company to split.
Private equity firm Sandell Asset Management, which owns 5.1% stake in Bob Evans Farms, recommended the latter's board of directors three strategies to boost shareholder value - spinning off the food business; unlocking the real estate value in Bob Evans' restaurant properties through a sale-leaseback deal; or implementing self-tender with the proceeds generated from the above strategies.
