RATH SEEKS CHAPTER 11 PROTECTION
The Rath Packing Company, an employee-owned meatpacker hailed as a leader in a new era of industrial democracy, filed yesterday for protection and reorganization under Chapter 11 of the Federal bankruptcy laws. In 1980, employees bought the company to try to keep it from failing. At noon yesterday, many of those same employees were told by Lyle Taylor, a former butcher and union leader who was elected president of Rath in March, that the company was seeking protection from its creditors.