Peanut Corporation of America files for bankruptcy
The peanut processing firm at the centre of a fatal salmonella outbreak in the United States has filed for Chapter 7 bankruptcy protection.
The move comes after the outbreak was traced back to one of the company's plants in Georgia, and after the closure of a second plant in Texas where dead rodents, rodent excrement and bird feathers were found.
Nine people are thought to have died in the outbreak and more than 500 people have been sickened by salmonellosis, which can be life threatening.
In a statement, the Peanut Corporation of America said:
"Given the events of the past month, including the broad-based recalls of the products sold by the company and its subsidiary in Plainview, Texas, the company has no alternative but to cease operations," said Andrew S. Goldstein of Magee, Foster, Goldstein & Sayers, a Roanoke, Va. law firm that specializes in bankruptcy and insolvency.
"This bankruptcy filing, while regrettable, will allow for an orderly liquidation of the company," said Goldstein, who filed the bankruptcy petition today. "It is in the best interest of creditors that all actions against the company be assembled under one roof," added Goldstein.