Kane Beef To Resume Operations Feb. 22

The sale of Kane Beef is scheduled to close Feb. 22, 2019, and operations are expected to resume "as soon as practical," the new owner says.
The sale of Kane Beef is scheduled to close Feb. 22, 2019, and operations are expected to resume "as soon as practical," the new owner says.
(Kane Beef)

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.

Related content:

Kane Beef Sold, Court Says

Kane Beef Files Chapter 11 Bankruptcy

 

Latest News

Legislation Introduced to Expand Local Meat Processing

The Strengthening Local Processing Act will increase options for local livestock and poultry producers and assist smaller facilities as they adapt to the COVID-19 pandemic and expand to meet consumer demand.

Profit Tracker: Cattle Margins Crumble, Hog Margins Solid

Cattle and hog finishing margins were headed in opposite directions last week, with lean hog prices enjoying a three-week rally while cattle prices were stuck in neutral for a second week.

Cattle Stranded On Ship Docked In Spain To Be Destroyed

Nearly 900 cows are set to be euthanized by Spanish authorities fearing bluetongue after the cattle drifted for more than two months on the Mediterranean Sea while the owners searched for a buyer.

<p>&nbsp; &nbsp; &nbsp;</p>
Stronger Undertone In Stocker And Feeder Prices

Auction markets noted firm demand and a stronger undertone last week for grazing cattle with spring now less than a month away. Auctions were in full-swing again after the previous week's winter storms.

Drovers Weekly Cattle Markets Update

Here's this week's update on cattle prices.

Identify ‘Dud’ Bulls With A Breeding Soundness Exam. Free Webinar Offered

DVMs Bob Larson and Jennifer Koziol will discuss how to evaluate bulls so only those that can get a high percentage of exposed cows pregnant in a short period of time are turned out into the breeding pasture this spring.