An April 21 SEC document for Nathan’s Famous announces that the company has received a $1.22M Paycheck Protection Program loan from the federal government and that its hot dogs were produced by a currently closed Smithfield Foods meatpacking plant in Sioux Falls, SD which has been labelled as the top coronavirus hotspot in the USA. Despite the shutdown, Nathan’s does not expect a disruption in national frankfurter supplies even if the facility’s reopening (currently scheduled for the week of April 27) is delayed.

The primary manufacturer of our hot dogs, Smithfield Foods, has recently announced the closure of four of its plants due to COVID-19. The only plant closure that has any relationship to our operations is the Sioux Falls plant which is currently scheduled to reopen during the week of April 27, 2020. In the event that the Smithfield Foods plant reopening is delayed, we do not anticipate that the rapidly evolving COVID-19 outbreak will have a material adverse effect on our supply of hot dogs over the next several months.

update Daily Beast reports that Nathan’s will return the loan.

update April 28 President Trump announced he will invoke the Defense Production Act to force meatpacking facilities to remain open. Nathan’s Famous executive chairman Howard Lorber is a friend of the Trump family and hosted a fundraiser in 2018.

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The New York Times ranked Smithfield Foods meatpacking plant in Sioux Falls, SD as the #4 coronavirus hotspot in the United States after 190 cases were detected there. In 2014, Nathan’s Famous started a licensing agreement with Smithfield Foods for it to manufacture and distribute Nathan’s branded hot dogs. update The plant will be shutdown for three days to sanitize the facility. PBS.org has a report on the 2013 takeover of Smithfield Foods by Shuanghui International for $4.7 billion, the largest Chinese takeover of any American company.

update Apr 12 Smithfield announced today the plant would be closed for an indefinite period

“The closure of this facility, combined with a growing list of other protein plants that have shuttered across our industry, is pushing our country perilously close to the edge in terms of our meat supply. It is impossible to keep our grocery stores stocked if our plants are not running. These facility closures will also have severe, perhaps disastrous, repercussions for many in the supply chain, first and foremost our nation’s livestock farmers. These farmers have nowhere to send their animals,” said Kenneth M. Sullivan, president and chief executive officer, for Smithfield.

update April 14 There are now 545 coronavirus cases associated with the facility, which makes it the #2 hotspot according to the New York Times and the top located in the 50 states. (The overall #1 is an aircraft carrier currently in Guam).

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