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Agriprocessors Suspending Production

POSTVILLE, IA [JTA] — Chaim Abrahams said Monday that company executives were in New York for a hearing on the kosher meat producer’s bankruptcy filing and hoped to resume production Tuesday. It was unclear, however, whether the company could meet the target.

CEO Bernard Feldman confirmed two weeks ago that the Postville plant would not have “substantial production of any kind in the near future.” The statement by Abrahams is the first to confirm that production has been suspended.

Agriprocessors was the target of a massive federal immigration in May, but in recent weeks its troubles have multiplied, leading to a Chapter 11 bankruptcy filing earlier this month.

Several companies have filed lawsuits against Agriprocessors, including a St. Louis bank that claims the company defaulted on a $35 million loan. The former Postville plant manager, Sholom Rubashkin, was arrested twice and is now being held in federal custody on multiple charges.

Rubashkin, the son of the company owner Aaron Rubashkin, stands accused of helping illegal employees procure fake work documents and orchestrating an accounting scheme that permitted the company to borrow more money than it had collateral to cover. If convicted, Rubashkin faces more than 50 years in jail.

Agriprocessors’ production woes add to an already unstable market for kosher meat. Retailers, restaurants and customers across the country have reported shortages and price increases.

On Sunday, the market received a dose of good news when Empire Kosher Poultry, a major producer in Pennsylvania, announced it would be increasing production by 50 percent. The increase will go into effect next week, as will a 10 percent reduction in the price of boneless chicken breasts.

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8 Comments

  • Boruch

    Everybody who wants to help the cause, log on to the following site to sign the petition in defense of Rubashkin. May Hashem bless you as a result.

  • Just an atempt at humor

    I heard that Rubashkin and Meal Mart are merging.

    They’re calling it…The United Stakes of America!!!

  • Rubashkin consumer

    If Empire takes over, they need Lubavitch mashgichim, and carry a Lubavitch hechsher. Enough already!!

  • a CHER

    OY! OY! :( does this mean that the shluchim will have to eat FISH!?!?!?! and NOT STEAK!!!!!!!!!!!!!!

    What is the world coming to!!!!

    OYYYYYYYOYYYYYYYYYYYYYYY

    Maybe they could eat hot dogs and be yoize with “meat”

    Maybe they will zoche to the slov just like the yidden who went out of mitzrayim. Bayomim Hohaim U’Bizman Hazeh! V’Kipshuto Mammash!

  • Rivkah

    Sholom Mordechai Rubashkin and his family need no introductions – their actions have made them a legend of kindness, support and assistance to anyone in need.

    Now it is their time of need.

    Their struggle to maintain their business and continue to provide the market with Kosher products in the face of incredible adversity has completely depleted their assets.

    They will, with the help of Hashem, prevail, but at the moment you can help – not for their business, but for their personal legal representation. This is a critical need at a time when the government is intent on making Sholom Rubashkin, as an individual, a cautionary tale to all businessmen.

    Let us reciprocate just a little of the support and assistance they have shown so many.

    _______
    You can make a tax-deductible contribution to the Aleph Legal Defense Fund, which exists to help people facing difficult legal expenses, online at http://www.aleph-institute….

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    For Wire Instructions Email: yl@alephinstitute.org

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    Thank you, and may Hashem show you kindness in return.
    PS Please include your friends in this Mitzva by forwarding this email. Together we can make a difference.Donate to The Aleph Institute Legal Defense Fund
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