Bankrupt Oregon fruit and vegetable cooperative NORPAC warned Wednesday it will be shutting down its two facilities in Salem, leading to layoffs of more than 900 employees.
The co-op had already said it planned to let go of nearly 500 employees in September as it began shutting down its Stayton plant. Wednesday’s announcement brings the total number of layoffs resulting from the co-op’s bankruptcy to 1,409.
When the company originally announced it would be shutting down its plant in Stayton, Oregon, it had seemed like its two Salem, Oregon, facilities might be spared the same fate. The Oregon Potato Company had said it wanted to purchase the NORPAC and continue most of its operations.
But the company withdrew from the deal last month citing regulatory issues, and NORPAC has not found a buyer to replace them.
The Capital Press reported Wednesday that NORPAC is in talks with four potential buyers. But in a letter notifying employees of the recent round of layoffs, the co-op's president and CEO, Shawn Campbell, said they have yet to strike a deal that would allow the two facilities to stay open.
“While NORPAC has continued to have discussions with companies about purchasing some or all of NORPAC's assets, as of today NORPAC does not yet have a buyer,” wrote Campbell.
He added that, while the co-op is looking for additional financing, “there is no guarantee that this will happen.”
Layoffs at both facilities are anticipated to take effect in the middle of January.