Charleroi food processor could be sold, court overseer says
A Charleroi-area food processing plant scheduled to close by the end of the month could remain open if a deal is reached with a prospective buyer, a federally appointed business receiver said Wednesday.
“We are negotiating with the buyer… and expect an agreement with an investment group” within a week, said Mark Welch, the Pittsburgh-based co-receiver for Fourth Street Barbecue Inc., which operates plants in Speers and Fallowfield, Washington County.
Welch, a senior vice president with J.S. Held of Jericho, N.Y., did not identify the prospective buyer, but said the party is conducting its due diligence on the financially troubled company. Although Welch filed an updated Worker Adjustment and Retraining Notification (WARN) with the state last week, moving the closing date from Oct. 31 to sometime before Nov. 30, he said the majority of the company’s 250 employees are still working.
The WARN notice states the company is winding down its operations, which involve co-manufacturing frozen food products for branded and private-label retailers nationwide. Welch noted that employees have been informed of when their jobs will be eliminated. The receiver did not reveal how many of the 250 workers remained on the job as of last week.
The company’s founder and owner, David Barbe, had been removed from his operational role by a previous receiver.
The initial closing notice came on Oct. 9 after Huntington National Bank of Columbus, Ohio, filed a lawsuit against Fourth Street Foods in U.S. District Court in Pittsburgh for defaulting on about $89 million in loans.
In addition to the money Huntington claims it is owed, Bongards’ Creameries of Chanhassen, Minn., filed a separate lawsuit seeking $2.89 million.
Bongards claims Fourth Street Barbecue received cheese between July 8 and Oct. 12 but never provided payment. Bongards is seeking the return of its cheese and any proceeds from its sale.
Bongards had also filed a lawsuit in Washington County Court last month seeking payment for the cheese it provided Fourth Street Foods.
Joe Napsha is a TribLive reporter covering Irwin, North Huntingdon and the Norwin School District. He also writes about business issues. He grew up on Neville Island and has worked at the Trib since the early 1980s. He can be reached at jnapsha@triblive.com.
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