Investigation, lawsuit target Fourth Street Foods
The Fallowfield Township company filed a notice with the state last week that it plans to lay off 252 employees.
Fourth Street Foods, a major food manufacturer located along Arentzen Boulevard in Fallowfield Township, is now under a federal WARN Act investigation while also facing a multimillion-dollar lawsuit from its primary lender.
The company, formally registered as Fourth Street Barbecue, Inc. dba Fourth Street Foods, filed notice with the Pennsylvania Department of Labor & Industry on Thursday, announcing plans to lay off 252 employees.
According to the state’s official WARN database, the layoffs are categorized as a “closing” taking effect between Oct. 9 and Oct. 31 at its Washington County facility.
The move prompted Strauss Borrelli PLLC, a national class-action law firm, to open an investigation into whether Fourth Street Foods violated the federal Worker Adjustment and Retraining Notification (WARN) Act, which requires 60 days’ advance written notice before large-scale layoffs or plant closures.
“We are investigating whether Fourth Street Foods failed to provide at least 60 days’ notice before laying off 252 employees and, therefore, violated the WARN Act,” the firm said. “Employees may be entitled to 60 days of severance pay and benefits.”
Just six days before the WARN filing, Huntington National Bank sued Fourth Street Barbecue Inc. in the U.S. District Court for the Western District of Pennsylvania, alleging breach of a credit agreement and default on loans exceeding $89 million.
The complaint, filed Oct. 3, details a 2022 credit and security agreement under which Huntington and two other lenders extended revolving and term loans totaling more than $88 million.
After a series of forbearance agreements throughout 2024 and 2025 — allowing the company to defer payments — Huntington alleges the borrower remained in default once the final forbearance expired Oct. 1, 2025.
As of Oct. 2, the bank claims Fourth Street owed $85 million on its revolving loan, $1,326,779.83 on its term loan, $2,847,222.36 on its capital expenditure plus accrued interest and attorney fees.
The bank seeks full repayment and legal costs, citing default under its credit and forbearance agreements.
The twin developments — mass layoffs and a federal default suit — have fueled speculation that Fourth Street Foods may be preparing for a sale or major restructuring.
Public records show owner Dave Barbe and affiliated entities have purchased dozens of residential properties in and around Charleroi since 2020, though no new property transfers involving Fourth Street Foods or Barbe have appeared in the Washington County Recorder of Deeds summaries to date.
Any new transfers would be recorded and viewable through the county’s Landex system.
Barbe said while he is the current owner on record, he was not able to directly comment on any recent developments with the company, regarding the recent lawsuit or WARN violations, as he retired last year and stepped away from operations. Chris Scott, the current CEO, did not respond to requests for comment prior to press time. Barbe said the company has been for sale. A potential deal has been underway over the past several months and is still working to be finalized.
Barbe said his attorneys will review the lawsuit and any other documents related to alleged WARN violations and respond as warranted.
Fourth Street Foods manufactures frozen and prepared food products for private-label, co-manufacturing and food service clients nationwide.
The Fallowfield Township facility has long been one of the Mon Valley’s largest employers.
The company previously made headlines for its reliance on immigrant labor and use of staffing contractors — including one whose owner later pleaded guilty to harboring undocumented workers — though no charges were filed against Fourth Street Foods itself.
No additional WARN filings, sale disclosures, or official company statements had been issued as of press time.
