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Pilgrim's in Athens Closing This Week
Monday, October 05, 2009 7:51 AM


(Source: The Decatur Daily)trackingBy Catherine Godbey, The Decatur Daily, Ala.

Oct. 5--After 57 years of operation and four different owners, a mainstay of Athens' economy will close this week, another victim of the economy.

But for the roughly 640 employees, the closing of the Pilgrim's Pride plant is more than a statistic -- it's life.

"This is bad. These are breadwinners who are losing their earnings," said Limestone County Economic Development Association President Tom Hill.

"This will affect their entire family.

"What we understand, and hope, is that some of the workers will be offered jobs at other (Pilgrim's Pride) plants. From the humanity perspective, that is good."

"Some," according to Ray Atkinson, is 12.

"About a dozen have gone to Russellville, and a few are going to Guntersville and Boaz," said Atkinson, Pilgrim's Pride spokesman. "If positions were available, they were offered to employees, but I don't know if there were a very large number available."

While few prepare to relocate, many face uncertain futures -- stories that echo through Limestone County.

"The impact will be felt everywhere. I have friends that work there, and they are concerned," said Limestone County Commission Chairman David Seibert. "Some accepted transfers, but many are searching for work."

Repercussions of the closing will extend beyond the hundreds of employees and ripple throughout the entire city.

For Athens Utilities, Pilgrim's Pride was the largest water and sewer customer, spending $4 million annually. Athens City Schools will also feel the loss of the company's $25 million annual payroll, which will impact the school system's budget.

The bleak financial picture for employees and the city mirrors the financial troubles of Pilgrim's Pride.

Questions about the company's financial stability emerged in December, when the company, one of the nation's largest chicken processors, filed for reorganization bankruptcy.

"We don't have any plans currently for any additional layoffs or plant closings. We're not going out of business," Atkinson said in December.

Six months later, officials announced plans to idle the plants in Athens and Athens, Ga. Previously, the company announced similar fates for Douglas, Ga.; Dalton, Ga.; El Dorado, Ark.; and Farmerville, La. Combined, the closings will impact about 4,250 employees.

But, as Isaac Newton noted, every action triggers a reaction.

"Our production should not be affected. The production at Athens will be consolidated into the other plants," Atkinson said.




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