ABERDEEN, S.D. (AP) — An attorney for Northern Beef Packers in the northern South Dakota city of Aberdeen says the company has filed for Chapter 11 bankruptcy protection.
Aberdeen Attorney Rory King told KSFY-TV that the filing took place Friday afternoon.
The company's employees were told last week that their paychecks would be delayed.
"We're optimistic and hopeful that the people operating the beef plant will find a way to make that function," Aberdeen Mayor Mike Levsen said. "The city government has no money invested in this whatsoever, so this is a private enterprise issue, not a city issue."
The slaughter plant laid off 108 of its 420 workers in April because of a lack of working capital.
The plant started up last fall after years of delays that included financial problems, lawsuits and flooding. Officials had hoped to eventually process 1,500 cattle a day from the Dakotas, Nebraska, Iowa and Minnesota. operating.
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Information from: KSFY-TV, http://www.ksfy.com