- The Washington Times - Monday, January 7, 2002

PAWTUCKET, R.I. (AP) A candy maker known for more than 90 years for its lollipops and jelly beans is moving manufacturing operations to Virginia.
The cost-cutting move by the former School House Candy will affect about 100 workers, some of whom may stay on at the company's local facilities.
The company tried for years to find a new manufacturing plant in Rhode Island, the Providence Journal reported on Friday.
When that effort failed, the company's parent, Sherwood Brands Inc., decided to consolidate manufacturing out of state.
The move does not affect about 50 workers at the company's corporate offices in Pawtucket, nor 250 assembly workers in the state and in southeastern Massachusetts.
Gift-basket assembly will be clustered in New Bedford, Mass., and in Central Falls and Pawtucket.
Manufacturing will be centered in Chase City, Va., beginning in April. The company expects to save more than $1 million a year.
"The basic program is to move two operations into one, with one management, under one roof," Sherwood President and Chief Executive Uziel Frydman says.
"We didn't want to move originally to Virginia, we wanted to move closer to here."
Sherwood, based in Rockville, Md., acquired School House's parent, the E. Rosen Co., in 1998 for $4 million in cash. E. Rosen at the time was insolvent and had filed for voluntary receivership.
The acquisition involved the business, equipment and customer lists, but did not include real estate. Sherwood inherited a lease to a five-story manufacturing plant it's been looking to leave for a new facility.
Sherwood had vowed to keep the company in Rhode Island, so it first looked for manufacturing facilities in the state but could not find anything suitable.


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