AFA Foods, one of America’s largest ground beef processing companies, filed for bankruptcy this week after it claims the “pink slime” controversy significantly changed the meat market. The pink slime, which is an ammonia-treated beef filler, created a major uproar that critics say should be banned.
The backlash has caused many U.S. supermarket chains to stop buying beef treated with the pink filler, leading many beef processing companies to stop production. AFA Foods, which produces more than 500 million pounds of ground beef a year, has had to close its California operations to conserve money.
According to the bankruptcy filing, AFA Foods had $219 million in assets and $197 million in liability. The company was able to obtain a $56 million in debtor-in-possession financing from Bank of America and GE Capital.
If you or someone you know is struggling financially and considering filing for bankruptcy, contact the bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC at (239) 237-0675.