Coverage of 'pink slime' forces meat firm into bankruptcy
In this undated image released by Beef Products Inc., boneless lean beef trimmings are shown before packaging. (AP Photo/Beef Products Inc.)
Published Monday, April 2, 2012 11:30AM EDT
NEW YORK - Beef products company AFA Foods says it's filing for Chapter 11 bankruptcy protection and selling its assets as a result of the recent media coverage of "pink slime."
AFA says the media coverage of the ammonia-treated filler has led to "changes in the market" for its ground beef products.
The company, based in King of Prussia, Pa., says it secured $56 million in financing from its lenders to fund operations and expects to continue providing customers with ground beef products throughout the process.
The company says it hopes to maintain as many of its supplier relationships as possible with its foodservice and retail companies.