A Howard County-based produce wholesaler is closing its doors in a consolidation move that comes less than two weeks before the Christmas holiday and affects more than 400 employees.

Lancaster Foods notified the Maryland Department of Labor this week that it will close its Jessup plant by Dec. 14 and lay off as many as 424 employees.

A representative for Lancaster referred a reporter to The Coastal Companies, which declined to comment. The Coastal Cos. of Laurel acquired Lancaster in 2020. Food giant Sysco Corp. completed its acquisition of The Coastal Cos. two years later.

Sysco Corp. said Friday that it will absorb two-thirds of the Lancaster plant’s full-time positions and that those workers are being transferred into a facility in nearby Laurel.

“We believe this is the right strategic and financial decision for Sysco and our specialty brands,” Sysco said in a statement.

Lancaster Foods began when two high school brothers saw an opportunity to provide fresh flowers and produce to their hometown community of Altoona, Pennsylvania, according to the company’s website.

From there, John and Dave Gates, the budding entrepreneurs, opened two locations in Altoona and Chambersburg, Pennsylvania, quickly expanding into farmers markets. In 1986, the pair bought Lancaster Seafood, establishing Lancaster Foods.

The brothers moved operations into Frederick, Maryland, but as business grew they moved once again in 1989 to “the heart of the Maryland Produce” in Jessup, according to the company website.

In 2008, the company moved into a 220,000-square-foot distribution and processing center. The company plant has nearly 700 employees, its website states.

Each day, Lancaster Foods has over 100 trucks driving up and down the East Coast, from Maine to Florida, delivering produce. Most stops are in Baltimore, Washington, Boston, Philadelphia and New York.

Lancaster’s mission has been “best quality … fastest service,” a phrase painted across their trucks.

An emphasis on locally grown produce has been a hallmark of the company since the beginning. Lancaster Foods has relationships with growers all over the Mid-Atlantic region to provide its customers with fresh produce year round.

The company hails itself as “the leader in the fresh-cut field,” because the operations find ways to stay ahead of trends, to in return drive higher sales for retailers, impulse sales and consumer convenience.

“Our customers can order anything… cauliflower, broccoli florets, whatever …and receive it the next day,” John Gates said in a 2016 interview published on the company’s website.

“Providing our customers that service, with consistent quality, has definitely made an impact,” he said. “It spawned our growth. … I believe that we have the formula to be Best in Class. I feel pretty good about our position in the marketplace. I learn from my customers.”