Posted on Tuesday, April 3rd, 2012 at 5:55 pm
AFA Foods, one of the country’s largest ground beef processing companies, filed for Chapter 11 bankruptcy Monday. The company blames the current uproar over the “pink slime” meat filler for its financial woes.
The pink slime controversy has caused some large U.S. supermarkets to stop buying meat containing the ammonia-treated filler, leading other meat processing companies like Beef Products, Inc. to halt production. Beef prices are expected to rise, as beef makes up the majority of the overall meat market.
According to the bankruptcy filing, AFA Foods has $219 million in assets and $197 million in liabilities. The company, which has plants in five states, plans to halt production in California to conserve money.
If you or someone you love is considering filing for Chapter 11 bankruptcy, contact the Chapter 11 bankruptcy lawyers of the Law Office of Russell Van Beustring, P.C. at 713-973-6650 today.