One processor's loss helps other companies gain
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ABERDEEN, SD – Northern Beef Packers, which filed for bankruptcy protection in July, has become a fertile recruiting ground for other meat processors looking for experienced workers, according to an Associated Press report
Turkey Valley Farms began recruiting workers for its turkey processing plant in Marshall, Minn., according to AP. Other large processors have advertised job openings. The recent interest from other processors comes at the right time for former employees of the Aberdeen, SD-based Northern Beef Packers, which eliminated jobs of all but six employees in July. The company also announced that employee paychecks would be delayed.
The cash-poor company is now looking for a quick sale to preserve the value of the beef packing facility, which cost $109 million to build. The company asked the court in Sioux Falls to allow it to hire investment banking firm Lincoln International, which is recommending a sale. Lincoln's strategy involves finding a "stalking horse" bid, in which one potential buyer makes an initial offer to set the floor for an auction that invites competitive bids.
Northern Beef Packers, which was once locally owned, is now 41-percent owned by businessman Oshik Song along with 69 other South Korean investors.