Frozen meal maker Fairmont Foods in south central Minnesota will close in March, leaving 167 employees without jobs.

Fairmont Mayor Randy Quiring said company officials told him declining business was to blame. The packaged foods industry has been struggling with sluggish demand.

"They've lost some contracts over the last few years, and just with the economic climate right now it was just hard to rebound from that," Quiring said.

The fate of the company's building is unclear, but Quiring said his main concern is helping the company's employees find new jobs in the area.

Fairmont Foods began operations nearly 20 years ago, making a wide variety of frozen dinners.