Posted to Jewish News on

Court Names New Agriprocessors Plant Overseer

Tony Leys – Des Monies Register

POSTVILLE, IA — The new de facto leader of Agriprocessors Inc. said Monday that he hopes to restart production at the Postville meatpacking plant as soon as possible.

Joseph Sarachek, a New York bankruptcy lawyer, was appointed by a federal judge last week to serve as the company’s trustee. The appointment gives him effective control over the business.

Sarachek was en route to Postville on Monday to tour the plant and try to get a handle on the situation. “Time is of the essence,” he said.

The company is in bankruptcy, and it suspended production last Monday. Scores of workers have gone without paychecks for at least two weeks. A makeshift food bank has been offering assistance to people since Friday.

Agriprocessors was Allamakee County’s dominant employer, but it has been struggling to survive since last May, when it was the site of a huge immigration raid. Its former top executive, Sholom Rubashkin, is in jail awaiting trial on federal charges of defrauding the company’s main lender and of helping immigrant workers gain false papers. Several other former managers also face criminal charges, and state officials have proposed millions of dollars in fines.

The Rubashkin family still owns the business, Sarachek said, “but they’re no longer in control.” A bankruptcy judge named him Agriprocessors’ trustee while the court sorts out how the company’s creditors can collect on the tens of millions of dollars they’re owed.

Sarachek said the company would be worth more if it were operating. He said he was bringing in two meat-industry experts with experience in kosher meat, which is Agriprocessors’ specialty. He declined to discuss a Rubashkin family lawyer’s prediction last week that the company would be sold soon. However, he said he has heard from several parties expressing interest in a possible purchase.

Sarachek said he didn’t yet know enough details about the situation to predict when the company would be able to issue paychecks. But he said it’s crucial that the plant have a labor force to restart production.

Ralph Rosenberg, executive director of the Iowa Civil Rights Division, said several state agencies are helping Postville residents cope with the plant’s closure. For example, he said, the Utilities Board is helping tenants prevent shutoffs of power and water service. Workforce Development officials are helping workers sign up for unemployment benefits. The Department of Human Services is helping people get food stamps and other benefits. The Department of Economic Development gave Postville a $698,000 grant to help residents deal with housing, utilities and other needs.

Rosenberg has been serving as the governor’s point person in Postville. He said hundreds of families relied on the plant and now need help. He noted that numerous private groups also are assisting. Area churches and community radio station KPVL are providing food. A Minnesota synagogue sent a vanload of kosher food for the many Jewish families that worked at Agriprocessors.

Rosenberg said state experts also would help Postville leaders plan for a long-term recovery from the crisis.

Related Articles

12 Comments

  • ceo

    we’re all watching whats happening all over the world. Chesed is in pro-active stage, and Im Yirtzah HaShem we want that the abishter sees how Am Yisroel and even non Jews reach out to help. With this, we pray that HaShem sends this situation into yeshuah.
    Yeshuas HaShem K’heref ayin….
    wishing only besoros tovos to the Rubashkin family who are all kind and decent people, and to anyone else who is affected by this. We’re all affected, we all have to do what we can do to help. Even Ahavas Yisroel wherever you are, acts of lovingkindness…..can reach the affected, so we all can do things to help!

  • shulamit

    i am quite dismayed by the unconditional support of the Rubashkin family by anash after the illegal and immoral acts Agriprocessors has perpetrated. the treatment of the employees (child labor violations, immigration issues, lack of pay for postville’s jewish community in recent weeks), the questionable treatment of the animals (see PETA’s investigation) and the way the rubashkin family feels it is above the law are absolutely disgusting. the entire story is a tremendous chillul and it is my honest hope that the rubashkin’s will face the consequences of their disgraceful behaviour by spending the maximum allowable time incarcerated. they are not deserving of the responsibility of providing the kosher world with staple items.

  • disturbed

    thsee comments are the stupidest thing created!
    If you have nothing good to say, DON’T SAY IT!

  • M.C

    Shulamit, you are a real anti-semite. I question your Yiddishkeit. Jews are known to be rachmanim and gomlei chassadim. You sure aren’t. It’s because of people like you, no wonder Moshiach hasn’t come yet.

  • to shulamit

    you are obviously misguided by the media and don’t know the true facts, nor do you know the rubashkins, so find out the truth before “riteously” bashing those that have done way more good than you could ever imagine.

  • to Shulamit

    If hashem ran the world like you what a terrible world it would be. life is not balck and white and when its time to choose what side you are on jews should help each other. your attitude is similair to how certain jews behaved in the holocust when they would sell out other jewish people. We should all unite and daven together. This is the right attitude that will bring moshiach and help the Rubashkin Family.

  • Menachem

    Shulamit,

    You are probably not a Lubavitcher but a union operative who somehow knows terms as “anash”, and if you are a Lubavitcher you are even worse.

    PETA? One of the most perverted organizations in America!
    You must be against Shechita for animal rights reasons.

    You must be a person filled with hate as “lack of pay for postville’s jewish community in recent weeks” shows.
    THEY DONT HAVE PAY FOR THEIR OWN POCKETS!

  • JEWISH ?

    TO SHULAMIT WHO EVER YOU ARE THERE IS A MITSVA CALLD PIDYON SHVUYIM A JEW IN PRISON IS A PARADOX WEATHER HE IS A CRIMINAL OR NOT WHICH IN THIS CASE HE IS NOT AS WE CAN ALL SEE THE REULT THAT A WHOLE COUNTY AND CITY ARE BROKE AND DONT HAVE FOOD TO EAT
    WHO GAVE THEM FOOD AND SUPPORT UNTILL NOW!!! A CRIMINAL OR A GOOD HEARTED OERSON ?

    ANY WAY IF YOU DONT FEEL THIS PARADOX IT IS THE SIMPLE REASON THAT YOU DONT FEEL THAT JEW AS YOUR OWN BROTHER
    AND LET PETA AND ALL THE OTHER ANTISEMITES INCLUDING YOU WHICH DOSE NOT LOVE BUT RATHER HATE THAT JEW GO BURN IN HELL FOR ALL YOUR SINS