Castleberry's rolls out last products
Canning company's sale leaves plant empty, hundreds out of work
By Tim Rausch| Business Editor
Saturday, November 15, 2008

Production lines came to a halt Friday at Castleberry's Food Co.

The 230,000-square-foot plant on 15th Street is for sale, and most of its 325 employees are unemployed.

A crew will remain in the plant until the end of the year to perform post-production cleanup, though corporate officials have not said how many people will be working.

Castleberry's Canadian owner, Connors Bros. Income Fund, embarked on a six-month review to decide whether to keep Castleberry's months after suffering a $38 million loss because of a widespread product recall in 2007. The conclusion of that review was announced in September: Augusta's 82-year-old canning company was being sold to a New Jersey subsidiary of Hanover Foods Corp.

Aunt Kitty's Inc., however, did not purchase the Augusta plant; it purchased just the inventory, equipment and rights to make the brand-name products, which forced a shutdown after a 60-day transition period.

"It has been a strong beacon for employment here in Augusta, especially in its neighborhood. There are a lot of people who walk to work every day," said Walter Sprouse, the executive director of the Development Authority of Richmond County.

In a letter to his supervisors, 20-year employee Cameron Davis said the company was like home and kept his children well fed.

He started with the company in October 1988 at age 18.

"It also kept my family well on its feet and made me the man I am today," Mr. Davis wrote. "So with that, I will like to conclude with a thanks to all the opportunities that was given and a thanks for providing me knowledge."

In Connors Bros.' latest earnings report, it said it was spending $2 million in severance for displaced workers.

Also Monday, Connors Bros. announced it had sold its operating businesses, Bumble Bee Foods and Clover Leaf Seafoods, to New York-based equity firm Centre Partners Management. Bumble Bee oversaw operations of Castleberry's.

Reach Tim Rausch at (706) 823-3352 or timothy.rausch@augustachronicle.com.

From the Saturday, November 15, 2008 edition of the Augusta Chronicle
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