×

COVID Holding Up Reopening Of Cheesemaking Plant

An Italian-based investment group has purchased the former Castelli America plant in the town of Harmony. P-J file photo

BLOCKVILLE — A former cheesemaking facility in the county remains closed due to the new owners’ inability to come visit the plant.

As reported by the OBSERVER and Post-Journal at the end of April, an Italian-based investment group purchased the former Castelli America facility in the town of North Harmony following its closure in December 2019. The newly formed company, Vittoria Dairy Inc., said in U.S. Bankruptcy Court documents it plans to eventually process cheese at the 5152 Fairbanks Road plant after its $1.4 million bid for the facility and its equipment was approved in a court-supervised auction in September.

The Chapter 7 bankruptcy proceeding was managed by a trustee, Jay Lubetkin, out of New Jersey. The sale of the property and its equipment to Vittoria Dairy was finalized in February.

Upon closing the purchase, the trustee was authorized to satisfy a number of claims, including $99,445 in taxes to the town of Harmony and $55,000 in sewer charges to the South and Center Chautauqua Lake Sewer District.

In a phone interview this week, Mark Geise, deputy county executive for economic development and CEO of the Chautauqua County Industrial Development Agency, said the new owners have been restricted from visiting. “They’ve been unable to get visas to get here and get in the plant. … This is all because of COVID,” he said.

Geise said right now the county is working with Rep. Tom Reed’s office to see if he is able to expedite visas for them. Until they can get here, the reopening is on hold. “This is still on the drawing board and it’s still a project they’re wanting to pursue,” he said.

Castelli’s parent company, the Italy-based Nuovo Castelli Group, purchased the former Empire Specialty Cheese manufacturing plant in the summer of 2016. Despite opening to much fanfare and backing in the form of low-interest loans and grants from a variety of local, state and federal agencies, Castelli reportedly experienced challenges related to production and sales.

On Dec. 9, 2019, the county IDA, which assisted Castelli America in opening three years earlier, confirmed that plant had closed and that 67 jobs had been lost.

Don Butler, the facility’s former general manager, said in an interview at the time of its closing that the plant had recently lost a couple of key customers and said the parent company “was not in a position to fund us.”

Eric Tichy contributed to this report.

Newsletter

Today's breaking news and more in your inbox

I'm interested in (please check all that apply)
Are you a paying subscriber to the newspaper? *
   

Starting at $4.62/week.

Subscribe Today