More than 500 people will lose their jobs when the Simply Essentials chicken processing plant in Charles City closes on Aug. 5.
Nearly 479 plant workers, 22 administrators and 12 field operations workers will be affected, according to a letter sent to all Simply Essentials LLC, employees on Thursday, a copy of which was obtained by the Globe Gazette.
The layoffs/terminations are expected to be permanent, the letter states.
"While Simply Essentials is continuing to negotiate with various parties in the hope of accomplishing a sale of its assets, at this point it does not appear that a buyer will be found prior who can take over operations before Aug. 5, 2019, or if an agreement is reached, the buyer may not hire a significant percentage of the workforce, requiring Simply Essentials to provide this WARN notice to all employees," the letter states.
State and federal law requires a WARN notice to be sent to employees 60 days before a business closes.
Simply Essentials has been in business since 2013, with a primary focus on health and wellness foods.
The Iowa Economic Development Authority Board awarded the company $1 million in investment tax credits and $66,000 through a refund of sales and other taxes paid during construction.
The plant, located at 901 N. Main St., had been mostly idle for nearly a decade before Simply Essentials purchase it in the spring of 2016.
The plant, once known as All-States Quality Food, closed in May 2006. Custom Poultry Processing began production there in November 2010 but closed in January 2011. Three of the company's creditors filed a petition for bankruptcy against the company the day before it closed.