Tech & Biz

Peanut Corporation of America files for bankruptcy

by Rachel Nixon | February 13, 2009 at 12:03 pm

183 views | 16 Recommendations | 6 comments

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.

0 See all footage | View Slideshow

Share: email story | add to any | | facebook | stumbleupon

recommend This comment thread is now closed

Paschen

at 12:48 on February 13th, 2009

What will happen to all the Peanut Farmers now?

tiredofthebull

at 12:57 on February 13th, 2009

With the economy in the condition it is in, I hate to hear of any businesses closing and people losing their jobs- but Someone should have ran that company properly and kept it clean of rodents and birds so that all of this could be avoided. Innocent people all across our country trust companies such as this one to abide by government guidelines and keep salmonella out of our food when it is being processed.

Art_By_Alida

at 20:09 on February 13th, 2009

I wish Obama would replace everyone who works at the FDA.

Someone should be held accountable....just like they should replace everyone at the SEC for the Bernie Madoff scandal when there was a man warning them for years and they ignored him.

No one in government is ever held responsible.

People are just fed up with the corruption and inefficiency.