Comment on AFA Foods files for bankruptcy citing 'pink slime'

AFA Foods files for bankruptcy citing 'pink slime'

AFA Foods files for bankruptcy citing 'pink slime' Associated Press Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Updated 08:44 a.m., Monday, April 2, 2012 NEW YORK (AP) — Beef products company AFA Foods said Monday that it is filing for Chapter 11 bankruptcy protection and selling its assets after the public outcry over the beef filler known as "pink slime" derailed its efforts to save its already struggling business. In the affidavit filed as part of the bankruptcy, interim CEO Ron Allen noted that the company has struggled for the past two years in a competitive industry marked by overcapacity and thin profit margins. AFA Foods had had been pursuing a turnaround strategy to increase sales to retail customers, but Allen said that the "unfounded public outcry" over the use pink slime, known in the industry as lean, finely textured beef strained those efforts.

 

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