Blue Bell shutting North Las Vegas distribution center

Blue Bell Creameries, still reeling after shutting its entire operation over a fatal listeria recall of its ice cream, is laying off workers for the first time in its 108-year history.

It is also suspending operations at its North Las Vegas distribution center and numerous others, according to a statement from company CEO Paul Kruse. In 2014, the company opened a 12,000-square-foot distribution facility at 6957 Speedway Blvd. in North Las Vegas that has employed about 15 people.

The company said Friday it’s laying off 750 full-time employees and another 700 part-timers, or about 37 percent of its workforce nationwide.

Employees who do stay on will have to take pay cuts. Another group of employees will be furloughed with sharply reduced pay.

Kruse said it was an “agonizing decision.” He added, “This is a sad day for all of us at Blue Bell, and for me personally.”

Blue Bell had to pull all of its products off store shelves last month due to potential listeria contamination. Three people have died and five others have fallen ill from the bacteria that may have come from Blue Bell products, health officials have said.

The Brenham, Texas, company shut down all four of its plants for cleaning and improvements, and that process is taking longer than expected.

Blue Bell hasn’t said when it expects to begin making ice cream again.

The news of layoffs and the North Las Vegas closure come as Blue Bell is planning a new distribution center in Henderson that has drawn opposition from residents. One neighbor, Howard Howe, filed a lawsuit in Clark County District Court seeking to stop the project, arguing it would violate covenants that bar either petroleum storage or a truck terminal on the property.

On Friday, Judge Joanna Kishner granted Blue Bell’s motion to dismiss Howe’s complaint, ruling it didn’t include enough detail to give the ice cream maker a fair chance to respond. But the judge gave Howe and his lawyers 20 days to file a new complaint that includes more specifics, so the case will likely continue.

Blue Bell’s lawyer had no comment on Friday. The Henderson City Council approved the distribution center in April.

Blue Bell is the fourth largest ice cream maker behind Nestle (maker of Dryer’s and Edy’s) and Unilever (maker of Breyers and Ben & Jerry’s) and Wells Enterprises, which makes Blue Bunny.

Blue Bell is privately held and has been run by the same family for 108 years.

The Review-Journal contributed to this report.