AP: Agriprocessors auction closed to media

The Chapter 11 bankruptcy sale for Agriprocessors in Postville will be held today as planned. However, the Associated Press is reporting that Gary Lewi, a spokesman for bankruptcy trustee Joseph Sarachek, has said the proceedings will be closed to the media.

Lewi also said that there are multiple bidders for the company, according to the AP report.

Since the company filed for Chapter 11 protection, fears and concerns have been expressed by several in the extended Postville community that the current owners might attempt to retain at least partial ownership in the facility by having a friendly company give the winning bid at today’s auction. The Rubashkin family, founders and former owner-operators of the kosher meatpacking facility, have remained silent about their intent toward the plant, but have made it clear of their intent to continue in the community they’ve built in Postville.

If another company were to purchase the meatpacking plant at today’s auction, there would be no conflict with maintaining members of the Rubashkin family as managers or retaining other supervisors who have served the plant. The Rubashkin family did revolutionize mass production glatt kosher processing. So, who better to run the plant than those who founded not only the location but the process?

Even Sarachek, who restarted poultry production at the plant during his tenure as bankruptcy trustee, has continued to seek the knowledge and skills of those who were already employed by the plant. Heshy Rubashkin, son of founder A. Aaron Rubashkin, and plant employees named in court documents have been seen on plant property while the bankruptcy worked its way through the courts.

Critics of the Rubashkins maintaining any leadership role in the facility are concerned that such attachments will prevent the plant from truly moving forward. They believe that the Rubashkins’ failed hiring practices will resume and while Postville may find immediate relief, the community will ultimately revisit the same problems it is experiencing now.

Federal cases against plant workers as well as against the plant itself will also have an impact. For instance, it remains to be seen how well another kosher meatpacker can do financially if it is stripped of the Rubashkin brands, which have become the subject of a federal forfeiture case.

Creditors, on the other hand, will likely be happy for any buyer to step forward. The plant has numerous creditors, who do not wish to be holding such large, empty bags in the current economic climate.

Regardless of whether individuals are in favor of the Rubashkins maintaining interest in the plant or would rather the family pursue other activities, the decision to close the auction to the press is not in the best interest of the public. Just as the immigration raid, the unpaid bills, the charges of child labor and the overall aftermath has not been limited to just the meatpacking plant, the public has an unquestionable interest in the outcome of the auction.

The auction is set to begin today at 1:30 p.m.

Update (1:30 PM): The sale is open to the press after all.  Iowa Independent’s Lynda Waddington is there, and she will have coverage when the event concludes.