AFA Foods makes beef products, including the filler denounced recently as “pink slime,” and the outcry over the stuff is why they’re filing for Chapter 11 bankruptcy. A company spokesman says the business was already struggling, but that the backlash against boneless beef trimmings just put a nail in their meat coffin.
The Associated Press reports on the filing, citing an email from the company’s spokesman. He says they don’t rely on the beef filler for its business, but only use it based on what the customer wants. The controversy aimed at the product, however, has reduced demand for all ground beef products.
AFA Foods is based in King of Prussia, Pa. and processes more than 500 million oounds of ground beef products a year. How’s that for an appetizing mental image? They count Burger King, Jack in the Box, Wendy’s, Walmart, Safeway and BJ’s Wholesale Club as customers. They also sell products under the names Moran’s, Stone River Ranch and Miller Quality Meats.
AFA had been trying to turn around their sales to retail customers, but the company’s interim CEO said that the “unfounded public outcry” over pink slime, or as they call it, lean, finely textured beef, upset all their plans.
Fellow beef product company Beef Products Inc., suspended operations at three of its four plants last week because of the pink slime controversy, which led to multiple retailers announcing they won’t sell it.
AFA Foods files for bankruptcy citing ‘pink slime’ [Associated Press]