A week after announcing a new buyer, HyLife Foods in Windom has reached a $14 million purchase agreement with the shuttered slaughterhouse's new owner, Premium Iowa Pork.
Judge approves sale of HyLife hog plant in Windom to Iowa pork producer
Premium Iowa Pork, based in northwestern Iowa, will pay a total of $14 million for the bankrupt hog slaughterhouse in Windom.
June 9, 2023 at 7:34PM
A federal judge in Wilmington, Del., approved the sale Friday for the pork plant that ceased operations last week. The company has filed for Chapter 11 bankruptcy, blaming a downturn in conditions for the global pork industry.
According to details filed in court, Premium Iowa Pork will purchase roughly $4.2 million in HyLife property and $9.8 million in furniture, fixtures and equipment. The Hospers, Iowa-based group will not inherit any of the Windom workforce, which numbered 1,007 workers at its height, many of them immigrant labor.
"[HyLife] has taken all necessary steps to terminate all current employees, except for those that are staying on to participate in the wind-down" of HyLife's Windom operations, according to a court filing.
During Friday's brief hearing, Judge Thomas Horan asked counsel for HyLife about the fate of the laid-off employees, including the hundreds of foreign, visa-holding workers who had 10 days to leave the country after HyLife closed a week ago.
"We have had no difficulties arise," said Jerry Hall, an attorney for HyLife. "They have, to my knowledge, all been repatriated to Mexico and to the Philippines."
Representatives for Premium Iowa Pork have not responded to multiple requests for comment on their plans for the plant. In an affidavit filed Wednesday, Jason Golly, Premium Iowa Pork's CEO, stated his company "has no connections" with HyLife and was the successful bidder in last month's auction.
On Thursday, Paul Sobocinski, a hog farmer in neighboring Redwood County, attended a job fair in Windom to solicit employees for meat lockers. Sobocinski said the event was sparsely attended.
"People are just in shock," Sobocinski said. "And the H-2Bs [foreign workers on visa] have left town."
In court, attorneys for HyLife anticipated the sale of the plant will close on Monday.
Companies are weighing the pros and cons of increasing inventory from overseas sources as in-coming president Trump pledges more tariffs, second U.S. port strike looms.
