Processing Plant to Close; Move Triggers 485 Layoffs

The company owes 5,000 debtors more than $100 million.

Jobs Layoffs 5a5f633ff2d72

The NORPAC vegetable farmers' cooperative will lay off 485 workers when it closes its processing facility in Stayton, Oregon on October 31, 2019.  

On August 22, 2019, NORPAC filed for Chapter 11 bankruptcy protection. The company owes more than 5,000 debtors more than $100 million.  

According to a report from the Statesman Journal, the company has an impending asset sale to the Oregon Potato Company for $155.5 million. The plant closure is part of the sale.  

According to the bankruptcy filing, Oregon Potato plans to buy NORPAC processing facilities in Brooks, Salem and Quincy, Washington. Plans for the Stayton facility were not disclosed.  

However, NORPAC sent Stayton employees a memo on August 30, 2019, that said the closure was permanent and encouraged workers to apply for open positions at other locations 

The plant reportedly dates back to 1924 when it was known as the Stayton Canning Company.