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Farm co-op NORPAC to close plant, lay off some 500 employees

September 6, 2019

SALEM, Ore. (AP) — NORPAC vegetable farmers’ cooperative has filed notice that it will lay off 485 workers and close its Stayton processing facility Oct. 31.

The Statesman Journal reports the closure is part of the company’s bankruptcy and impending sale of its assets to Oregon Potato Company for $155.5 million.

NORPAC filed for Chapter 11 bankruptcy protection Aug. 22 stating it owes more than 5,000 debtors over $100 million.

The bankruptcy filing indicated Oregon Potato Company owned by Frank Tiegs would purchase the company’s Salem, Brooks and Quincy, Washington processing facilities, but did not say what it would do with the Stayton facility.

A letter from NORPAC to employees says Oregon Potato Company now plans to buy the Stayton plant but doesn’t plan to continue operations there. The letter encourages Stayton employees to apply for open positions at other locations.

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Information from: Statesman Journal, http://www.statesmanjournal.com

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