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Official: Bankruptcy won't affect local plant

Tue. December 02, 2008; Posted: 10:31 AM
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SANFORD, Dec 02, 2008 (The Sanford Herald - McClatchy-Tribune Information Services via COMTEX) -- CHX | Quote | Chart | News | PowerRating -- Monday's announcement that Texas-based Pilgrim's Pride Corporation filed for Chapter 11 bankruptcy in a federal court will have no effect on the company's Lee County operation or any of the company's other plants, a spokesperson said.

"There are no plans at this time for any impact on any of the company's operations. It will be business-as-usual," said Meaghan Repko, a company spokesperson.

The plant on Zimmerman Road in the Cumnock community employs roughly 1,300 people and produces case-ready retail chicken such as boneless and skinless parts, as well as bulk pack chicken, such as whole breasts or wings.

The company announced Monday that it filed voluntary petitions for relief in an effort to address challenges related to the rising cost of chicken feed and debt incurred when the company purchased competitor Gold Kist in 2007.

The company's troubles had a negative impact on the area earlier in the year. In March, the company's plant in Siler City closed, putting 830 people out of jobs. That closing was part of an initiative by the company to cut 1,100 workers.

Pilgrim's Pride employs approximately 48,000 people and operates 46 facilities in North America. According to the Associated Press, nearly 400 people were expected to lose their jobs at the company's East Texas plants.

The company's products are sold to food service and retail customers.

To see more of The Sanford Herald or to subscribe to the newspaper, go to http://www.sanfordherald.com. Copyright (c) 2008, The Sanford Herald, N.C. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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