Century-old Harker's closing
Former food distributor was once Le Mars' second-largest employer
By Dave Dreeszen, Journal business editor | Posted: Thursday, August 28, 2008
LE MARS, Iowa -- Harker's Distribution, which grew from a small meat market started 100 years ago into one of the Midwest's largest independent food service distributors, is calling it quits.
The Le Mars-based firm shut down its meat processing plant here last week and is set to close its adjacent corporate offices Friday. Combined, nearly 30 management and production jobs are being eliminated, according to local officials.
CEO Jim Harker, the fourth generation of his family to run the business, did not immediately return a call to the Journal on Wednesday.
In 2006, Harker and other members of his family repurchased the business his great-grandfather, cattle producer George Harker, founded in 1908 as a small meat market in downtown Le Mars.
Faced with increasing competition from much larger players, Harker's in recent years reduced its work force and returned to its roots of cutting steak and other meat for restaurant and food service firms. In November, the company sold its 11-state trucking and distribution business to a firm in Wisconsin, a move that eliminated 72 local jobs, including 12 at the corporate level.
A team of Iowa Workforce Development officials met Tuesday in Le Mars with the remaining 28 Harker's workers, who are eligible for unemployment benefits, job retraining and other employment assistance.
"I certainly hope and have reason to believe that a number of the very qualified employees that have been with Harker's for many years will be absorbed into our workforce here,'' said Neil Adler, executive director of the Le Mars Business Initiative.
Adler said some production workers could end up at similar meat processing firms in nearby Orange City, Sioux Center or South Sioux City.
Harker's, which billed itself as the "largest speciality center-of-the-plate food service distributor, employed as many as 1,500 in Le Mars at its peak in the late 1980s. At the time, it was the Plymouth County seat's second-largest employer, behind only Wells' Dairy, which today has more than 2,000 workers.
In addition to Le Mars, Harker's once operated processing plants in nearby Orange City and Sioux Center, as well as in Denver and Minneapolis. The company served more than 12,000 customers in 14 Midwest and Rocky Mountain states.
In 1986, the Harkers sold the company to Holly Foods Corp. Three years later, meatpacking giant IBP Inc. acquired Harker's through its purchase of Holly Foods.
In 1990, Ron Geiger led a management buyout of Harker's distribution company from then-Dakota City-based IBP. The late Geiger served as Harker's CEO until his retirement in 2006.
As the Harker family prepared to repurchase the business in 2006, the city of Le Mars agreed to lend the company $500,000 for future expansion. The city assistance helped Harker's secure a $1.5 million loan from the state of Iowa. At the time, state officials said the aid helped ensure the company would remain headquartered in Le Mars.
The company, which failed to complete its planned expansion, settled with the state Economic Development Department in November, agreeing to pay a 6 percent penalty.
Adler said he is optimistic that a new use will be found soon for Harker's former offices and production facilities.
The Le Mars-based firm shut down its meat processing plant here last week and is set to close its adjacent corporate offices Friday. Combined, nearly 30 management and production jobs are being eliminated, according to local officials.
CEO Jim Harker, the fourth generation of his family to run the business, did not immediately return a call to the Journal on Wednesday.
In 2006, Harker and other members of his family repurchased the business his great-grandfather, cattle producer George Harker, founded in 1908 as a small meat market in downtown Le Mars.
Faced with increasing competition from much larger players, Harker's in recent years reduced its work force and returned to its roots of cutting steak and other meat for restaurant and food service firms. In November, the company sold its 11-state trucking and distribution business to a firm in Wisconsin, a move that eliminated 72 local jobs, including 12 at the corporate level.
A team of Iowa Workforce Development officials met Tuesday in Le Mars with the remaining 28 Harker's workers, who are eligible for unemployment benefits, job retraining and other employment assistance.
"I certainly hope and have reason to believe that a number of the very qualified employees that have been with Harker's for many years will be absorbed into our workforce here,'' said Neil Adler, executive director of the Le Mars Business Initiative.
Adler said some production workers could end up at similar meat processing firms in nearby Orange City, Sioux Center or South Sioux City.
Harker's, which billed itself as the "largest speciality center-of-the-plate food service distributor, employed as many as 1,500 in Le Mars at its peak in the late 1980s. At the time, it was the Plymouth County seat's second-largest employer, behind only Wells' Dairy, which today has more than 2,000 workers.
In addition to Le Mars, Harker's once operated processing plants in nearby Orange City and Sioux Center, as well as in Denver and Minneapolis. The company served more than 12,000 customers in 14 Midwest and Rocky Mountain states.
In 1986, the Harkers sold the company to Holly Foods Corp. Three years later, meatpacking giant IBP Inc. acquired Harker's through its purchase of Holly Foods.
In 1990, Ron Geiger led a management buyout of Harker's distribution company from then-Dakota City-based IBP. The late Geiger served as Harker's CEO until his retirement in 2006.
As the Harker family prepared to repurchase the business in 2006, the city of Le Mars agreed to lend the company $500,000 for future expansion. The city assistance helped Harker's secure a $1.5 million loan from the state of Iowa. At the time, state officials said the aid helped ensure the company would remain headquartered in Le Mars.
The company, which failed to complete its planned expansion, settled with the state Economic Development Department in November, agreeing to pay a 6 percent penalty.
Adler said he is optimistic that a new use will be found soon for Harker's former offices and production facilities.
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