Bankruptcy
On November 5, 2008 Agriprocessor filed for Chapter 11 bankruptcy. Factors cited included a loss of most of the workforce due to the May 2008 immigration raid, declining demand for the firm's products, and increased costs in the aftermath of the raid. The Associated Press reported that “Agriprocessors in its bankruptcy filing said the company owed $50 million to $100 million to creditors. The move appears to be an effort to pre-empt foreclosure by a St. Louis bank, which sued Agriprocessors for defaulting on a $35 million loan”.
In December, the bankruptcy court approved a $2.5 million loan for Agriprocessors to allow it to resume poultry processing through at least January 9, 2009 (about 750,000 chickens). The company was run by Chapter 11 bankruptcy trustee Joseph E. Sarachek of Triax Capital Advisors.
Agriprocessor's problems led to a shortage of kosher meat and higher prices nation-wide. Empire Kosher, the largest US producer of kosher poultry, doubled its production capacity in response.
Agriprocessors was bought at auction in July 2009 by SHF Industries, a company formed by Canadian plastics manufacturer Hershey Friedman, an observant Orthodox Jew, and his son-in-law, Daniel Hirsch. The plant has resumed business under the new name Agri Star Meat & Poultry, LLC.
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