Reports Phil Milford and Shruti Date Singh on Bloomberg:
AFA Foods, a ground-beef processor owned by Yucaipa Cos., sought bankruptcy court protection with a plan to sell some assets after media coverage of “pink slime” cut demand for its products. The company, based in King of Prussia, Pennsylvania, listed assets of $219 million and debt of $197 million in Chapter 11 papers filed today in U.S. Bankruptcy Court in Wilmington, Delaware.
Celebrity chef Jamie Oliver is among food activists who have criticized the use of what they dubbed “pink slime,” a filler produced by treating finely ground beef scraps with ammonia hydroxide to kill pathogens. Beef Products Inc. last week temporarily suspended production at three plants because of consumer concerns. U.S. Agriculture Secretary Tom Vilsack said March 28 that the product, referred to in the industry as lean, finely textured beef, is safe to eat…
Read More: Bloomberg