FreshRealm bankruptcy to lay off 228 workers at Tracy facility
FreshRealm, a large-scale fresh food production company that partners with Blue Apron, has filed for bankruptcy — a move that will result in hundreds of local job losses.
According to a WARN Report Summary from the California Employment Development Department, 228 employees at the company's Tracy facility are set to be laid off.
Workers say the impact is already being felt on the ground.
One employee, who has worked in packing at the facility for four years, told CBS News Sacramento she and her colleagues were informed during a meeting on Wednesday that June 27 would be their final day.
Kristian Brower, an assembly line worker who has been with the company for nearly a year, said the news has been difficult for many longtime employees.
"Working here in Tracy, I'm feeling pretty blessed, thankfully, to be a part of the company while it was going," Brower said. "But there's a lot of people that have been around for 5-plus, 10-plus years, and it's devastating."
In a statement, FreshRealm said its Chapter 11 filing follows a "significant ingredient supply disruption in 2025 that materially impacted the company's operations and financial performance."
The company said it is entering bankruptcy proceedings in an effort to stabilize operations and explore strategic options moving forward.
"We have built a business that serves an important need in the fresh food and meal space, and we remain focused on continuing to serve our customers while supporting our employees, suppliers, and partners through this transition," said CEO Michael Lippold.
City leaders say that while the decision was out of their control, the local impact is a concern.
"The announcement that FreshRealm has filed for bankruptcy and will be closing its facilities — including the Tracy manufacturing location — is ultimately a business decision made by the company," said Tracy Mayor Dan Arriola. "While the City is not involved in those choices, we care deeply about the impact on local workers and remain committed to supporting a strong, stable economy for our community."
Arriola noted the closure reflects broader economic shifts affecting industries nationwide, as companies adjust to changing market conditions.
Still, both city leaders and workers expressed cautious optimism about what could come next for the site.
"There's some good word that it's going to go to a good company, and we'll see how it continues to play out," Brower said.
City officials say they are hopeful a new tenant can quickly take over the facility and bring new jobs to the area.
"We are hopeful about what comes next for the site and encourage the property owner to move quickly in securing a new tenant," Mayor Arriola said. "The City is ready to provide support and remains committed to supporting reinvestment that brings quality local jobs to Tracy and strengthens our community."
CBS Sacramento reached out to FreshRealm for additional comment but had not received a response as of Wednesday evening.
