Closure of Washington County food plants causes confusion and lawsuits
More than 250 workers are set to be laid off from one food company in Washington County.
From Speers Borough to Fallowfield Township – it's a sad time.
"It's going to hurt us tremendously," Speers Borough Council President Curtis Rice said.
Rice is talking about the closure of Fourth Street Foods.
A posted Worker Adjustment and Retraining Notification Act (WARN) Notice on the Pennsylvania Department of Labor and Industry's website says 252 people will be laid off by closure on October 31st.
Fourth Street Foods is a food manufacturer with a processing plant in Speers and another facility in Fallowfield Township.
Rice said the foods were made and put together at the Speers facility. Then, they were shipped to the Fallowfield facility.
"That's where the stuff will be packaged up then, and you know – to the big crates," Rice said. "And then they would be shipped out."
Huntington National Bank is suing the company. It claims Fourth Street Foods defaulted on loans and broke a credit agreement.
Rice said he last talked with Fourth Street Foods at the beginning of the year.
"I mean, seemed like everything was fine…There were no problems," he said.
There's also a class-action law firm, Strauss Borrelli PLLC, that is looking into whether Fourth Street violated federal warning laws.
It's investigating whether the company gave employees enough warning.
Rice said Speer Borough's businesses mean a lot for the tax revenue.
"We're just a small community of approximately 1,200 people," he said.
Rice said many of them are elderly.
"A lot of them can't afford to pay more taxes," he said.
He's questioning the future of the tax base and wondering what the borough does next.
"If this goes down and something doesn't come in there soon after this closes down – this is going to hurt a lot of people," he said.
We've reached out to Strauss Borrelli PLLC, the class-action law firm that is investigating whether Fourth Street Foods violated the Federal WARN Act.
We've also reached out to Fourth Street Foods itself – we're still waiting to hear back from both.