Snacks & Candy

Peanut Corp. of America Files for Bankruptcy

Company at center of salmonella outbreak, product recalls seeks Ch. 7 protection
ATLANTA -- The peanut processing company at the heart of a national salmonella outbreak filed for bankruptcy Friday, a sign the beleaguered company plans to cease business in the wake of the health scare, the Associated Press said. Peanut Corp. of America (PCA) filed for Chapter 7 bankruptcy protection in bankruptcy court in Lynchburg, Va. The Chapter 7 filing allows for an orderly sale of the company's assets to pay creditors.

"It's regrettable, but it's inevitable with the events of last month," said Andrew S. Goldstein, a bankruptcy lawyer in Roanoke, Va., who filed the [image-nocss] petition.

The nationwide salmonella outbreak that has sickened some 600 people and may have caused nine deaths was traced to the company's plant in Blakely, Ga., where inspectors found roaches, mold and a leaking roof. A second plant in Texas was shuttered this week after preliminary tests came back positive for possible salmonella contamination.

The company said in the filing that its debt and assets both ranged between $1 million and $10 million.

"It is in the best interest of creditors that all actions against the company be assembled under one roof," Goldstein said.

The government is working on a criminal investigation into the case, and more than a dozen civil lawsuits have been filed.

Peanut Corp. president Stewart Parnell repeatedly refused to answer questions last Wednesday before the House Energy & Commerce investigations subcommittee, which is seeking ways to prevent another outbreak. But e-mails surfaced indicating he directly ordered products the company knew were tainted to be shipped anyway.

Reached by telephone, Parnell said his attorneys had advised him not to talk. "If I could do it, I would," he said.

Click herefor the U.S. Food & Drug Administration's (FDA) frequently updated peanut butter recall webpage.

Andclick here for previous CSP Daily News coverage. Or go toCSPnet.com's search engine and search on the words "peanut butter" for complete coverage.

Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Foodservice

Opportunities Abound With Limited-Time Offers

For success, complement existing menu offerings, consider product availability and trends, and more, experts say

Snacks & Candy

How Convenience Stores Can Improve Meat Snack, Jerky Sales

Innovation, creative retailers help spark growth in the snack segment

Technology/Services

C-Stores Headed in the Right Direction With Rewards Programs

Convenience operators are working to catch up to the success of loyalty programs in other industries

Trending

More from our partners