Bids to buy Austin Packaging due Monday; auction slated for Wednesday

Companies interested in buying Austin Packaging have until Monday to submit bids before a Wednesday Auction.

Companies interested in buying Austin Packaging have until Monday to submit bids before a Wednesday Auction.

Companies looking at taking over the Austin Packaging Company will submit their bids on Monday.

From there, an Auction on June 19 will determine the new owner of the company, which will be approved in Mower County Court on June 20. That new owner will close the sale the week of June 24.

APC has operated under the interim management of Tony Natale, of Shepherd Partners Inc. of Chicago, who has worked to stabilize the company’s dire financial situation after owners Jim Heimark and Jeff Thatcher filed for receivership on April 10, several weeks after shutting down APC’s frozen pizza department and laying off 76 employees. Since that time, Natale, APC owners and Wells Fargo Bank hashed out a plan, which was approved in Mower County Court, to sell the company’s assets and pay off its debts. As of last month, according to court documents, APC had a $2.9 million balance on a Wells Fargo line of credit, $1.9 million in unpaid equipment loans, along with trade creditors asserting claims for a total of $5.8 million as of April 30.

In May, a prospective buyer set the first bid at about $5.6 million and agreed to assume various debts and obligations.

Natale said six to seven potential buyers have toured APC’s facility, which houses frozen food and sauce production, and he still suspects whoever takes over the company will continue production. He added those who have seriously considered buying APC are with existing food manufacturers that are larger than APC. Therefore, Natale doesn’t expect significant layoffs or restructuring of employee contracts, as the potential buyer will have been through this process in the past. When a company closes the sale, current employees will be terminated from APC contracts and will have to agree to terms with their new employer. However, Natale suspects most employees will continue to work at the facility without changes.

“We don’t anticipate any interruption in production,” Natale said. “I expect people would be working [throughout the sale closing].”

SportsPlus

Business

Guided to Serve: For 25 years Theresa Turnbull has been a trusted soul at Comforcare

Mower County

New mobile app launches to combat food insecurity in Mower County

Mower County

Report on sanitary sewer evaluation given during City Council work session

Agriculture

Kimberly Vrieze joins membership of American Angus Association

Education

Education Briefs

News

Trump’s foreign aid freeze could prove to be a boon for the world’s authoritarian strongmen

Mower County

Austin firefighters battle southwest Austin fire, APD investigating

Mower County

Public hearing set for March 3 regarding addition to Nature Ridge Fourth development

News

Another week to be shaped by court fight over power dynamic within Minnesota Legislature

Mower County

PHOTOS: APDT hosts annual dance show

News

Democrats elect Ken Martin, the party leader in Minnesota, as national chair

Mower County

Love is in the air: Austin Area Foundation to celebrate annual For The Love of Austin

Mower County

YMCA at ACRC celebrates 5th anniversary with special event for community, members and donors

Mower County

Herald collects five awards at this year’s MNA convention

Mower County

Zonta Club of Austin offering a pair of opportunities

Mower County

State Fair and Minnesota Farm Bureau Federation accepting Century Farm Applications

Mower County

In Your Community: Masons continue supporting Salvation Army food shelf

Mower County

In Your Community: Mower County Senior Center

Mower County

In Your Community: Duplicate Bridge

Education

Education Briefs

Crime, Courts & Emergencies

Convictions: Jan. 20-27

News

Report: Minnesota’s greenhouse gas emissions bounced back after pandemic, still below 2019 level

News

Flu, COVID-19 and whooping cough down, norovirus still up

News

Trump says he’ll place tariffs on Canada, Mexico and China on Saturday