The sale of Kane Beef, Corpus Christie, TX, is scheduled to close Feb. 22, 2019, according to the former bankruptcy judge appointed to oversee plant operations. Kane Beef’s employees could be back at work by the end of the month.
Richard Schmidt, the court-appointed official, told Houston’s KRIS 6 News the plant’s new owner, JDH Capital, intends to begin operations as soon as the sale is finalized and Feb. 22 is the likely date employees will learn when they’ll be called back to work.
“It will be a gradual process, but it will be a very rapid one where they’re brought on and back as employees,” Schmidt said. “The HR Department is there and they are already working on a plan to bring everybody back.” Kane Beef's 725 employees have been furloughed since the last week of January.
Additionally, Schmidt says an agreement should be reached soon with the city for the company to resume operations with its existing wastewater permit.
Last week’s auction of Kane Beef was held in a Houston bankruptcy court, with JDH Capital emerging as the winning bidder, paying $28 million for south Texas processor with a daily harvest capacity of 1,200 head.
Under the terms of the transaction, JDH said in a statement it intends to acquire "substantially all the operating assets of Kane Beef," and plans to make "meaningful investments in the processing plant and will continue to operate the business as a going concern."
Ryan Connelly, JDH’s managing director, said, “While there have been recent challenges with the business, our potential investment is an indication of the opportunity we see to turn things around." He said the company plans to assess the business and formulate a long-term plan for revitalization in the coming weeks.
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