Over 1,000 jobs cut nationwide as food supplier spirals into bankruptcy

A major supplier behind some of America’s most recognizable meal kits is collapsing under the weight of recalls, lost business and mounting financial pressure. Now, more than 1,000 workers across several states are expected to lose their jobs as the company fights to survive bankruptcy proceedings.

FreshRealm files for Chapter 11 bankruptcy

FreshRealm, a national fresh-food manufacturing and fulfillment company, filed for Chapter 11 bankruptcy protection in late April. The company cited a significant ingredient supply disruption in 2025 that severely damaged operations and financial performance. 

The company is best known as the exclusive producer of meal kits for Blue Apron, while also supplying prepared meals for retailers including Walmart and Kroger. According to court filings, Blue Apron accounted for roughly 75% of FreshRealm’s revenue. 

More than 1,000 layoffs announced

FreshRealm’s bankruptcy filing has triggered sweeping layoffs nationwide. WARN notices show the company plans to eliminate more than 600 jobs in Linden, New Jersey, along with hundreds more positions in California, Texas, Indiana and Georgia. 

Facilities in Indianapolis and other locations had already been slated for closure before the bankruptcy filing. In California alone, more than 200 workers are expected to be affected, including employees at the company’s Tracy facility. 

Recalls and lost customers intensified problems

FreshRealm’s troubles accelerated after a 2025 listeria-related recall linked to ready-made pasta products sold through Walmart and Kroger. Federal investigators connected the outbreak to multiple illnesses, deaths and a fetal loss. 

Following the recall fallout, Walmart reportedly ended its relationship with FreshRealm, removing a customer that accounted for more than 20% of the company’s revenue. Meanwhile, Blue Apron is expected to transition fulfillment operations to Misfits Market as part of a proposed agreement tied to the bankruptcy case. 

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