Employees at the Frito Lay plant in Allen Park were caught by surprise when they discovered the plant was closed Thursday morning, Local 4 reported.

The company plans to completely close the plant -- located at 1000 Enterprise Drive -- by the end of October, the station reported.

Employees who showed up for work at 7 a.m. were told they would have severance packages prepared for them. They are expected to hear back from the company in about six days.

"Thirty-three years down the drain," said employee Gino Chaczyk. "We knew it was coming. Management wouldn't listen to us."

A majority of the 390 employees at the 34-year-old plant will lose their jobs, the station reported. The plant is one of four the company plans to close after performing productivity surveys on operations.

Along with severance packages, employees will be offered job-placement assistance and transition benefits. Employees will be paid for 60 days, Local 4 reported.

Report: Kmart Shops Out Of State For New HQ

Troy-based Kmart may be moving its headquarters out of Michigan.

Local 4 reported that according to sources Kmart plans to move its headquarters. The retailer has been shopping in and out of Michigan for a new location to base its headquarters.

The corporation will likely ask about 20 percent of its current headquarters workforce to relocate if the company moves to Atlanta, the station reported. The remaining employees could lose their jobs.

Kmart is reportedly considering Atlanta because of low tax rates and the low cost of conducting business in the southern states. Local 4 reported New York was also a possible location for the new headquarters.

"My bet is that they are going to move out of the state of Michigan," said BDK retail analyst Gary Ruffling. "They are going to be looking at opportunities outside the state where they can get a fresh start from everything ... all the baggage."

Gov. Jennifer Granholm is also speaking with Kmart about staying in Michigan, Local 4 reported.

A decision is expected in a few weeks.

Stay tuned to Local 4 News with a report from business editor Rod Meloni and ClickOnDetroit.com for the latest developments.