With each passing day, there are signs that the bankrupt Agriprocessor may soon be on the comeback trail. The company, operated by a bankruptcy trustee, for the first time took out full page ads in several Jewish newspapers for its poultry line, the only production that has been occurring at the Postville IA plant.
KosherToday has learned that after a failed auction, the company may have already been sold to a group of investors who previously managed to overcome a major obstacle for a sale. The undisclosed company is said to have bought a $10 million credit line paving the way for the plant’s sale. The source told KosherToday that the investors “cracked the big nut by buying out First Bank Business Capital’s loan to Agriprocessor for an undisclosed amount.” Agriprocessor filed for bankruptcy in November, almost six months after federal immigration agents raided the plant and arrested 389 workers. The bank initially sought to recover most of the $37 million it had lent the company, (“and probably could have gotten it earlier,” the source told KosherToday) but it is said to have received only a fraction of that amount.
With word that the company will be managed by new ownership at some point in the not too distant future, many in the kosher industry were speculating whether the company could make a comeback to its former position. Several sources told KosherToday that the new owners will find “a totally different landscape” with some markets “having an abundance of product” while other small markets have totally given up on carrying kosher meats. In the end, most ventured a guess that an initial comeback would have to be based on the old model of price. Many in the industry had always blamed Agri for keeping prices artificially low due to its business model and “religious desire to supply kosher meat to the masses.” In time the new owners will have to carve out a very quality oriented unique brand that may give them a shot at recovering their former leadership position, the sources opined.
(Source: Kosher Today)
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4 Responses
We consumers rely on the Kashrus authorities to carefully watch these companies and their employees; what happened?
there was also a kashrus concern (as reported by a frum person who worked in the plant)that some beef (shor bor) was coming in from outside the country and no one in the plant knew what was going on with it. Also There were concerns of who the shochtim were (i.e. mashiachistin, elokistin, etc.) Does different ownership mean different shochtim??? Before anyone jumps it should be noted that a well known poseik in the Lakewood area has already paskened that lubavitch shechted meat should not be used beacause of the above mentioned problems.
What is the name of the posek in Lakewood? Is it a secret?
it has already been privately noted in the kashrus industry, as well as by individuals, that one who comes out against lubavitch publically is in danger of real physical violence. One person called in to a radio talk show and spoke against the rebbe’s shitas, and the next caller publically told him on the air “I’m going to come to your house and strangle you!” When you are dealing with elements that beleive in a FALSE mashiach, anything is possible.
When you have a movement that won’t sleep in a succah because their rebbe said there’s too much kedusha there, you can not expect normal behavior from them. Perhaps we shouldn’t put on tefillin because there’s too much kedusha?????? The Rambam slept in a succah. the rebbe felt more kedusha than the Rambam??? Why learn the Rambam?? I know of one Kashrus agency that does not allow the caterers to use Aarons products. When I asked the head mashgiach, why do you allow their products to be sold in town at all? His answer was “I want to live. (i.e. i’m in real fear for my safety). As for the issue of Rav Weismandel and the OU, ask the KAJ why they pulled out of AARONS. Last but not least, are you comfortable eating meat the was or possibly was schechted by a person than believes that their dead rebbe is now directing world events, that you can daven to him for your needs, and is the best candidate for mashichach over all the nevii, tanayim, amoroyim, rishonim, and achronim and the Baal Shem Tov (who was the one the rebbe was supposedly FOLLOWING)???
If there are no problems with the above Why is there a need to have Rav Weissmandel or the OU on the label at all?? Could it be some people might not trust the crown heights hechsher by itself?!