AFA Foods, a company that produces beef products, filed for Chapter 11 bankruptcy protection today and announced it’s selling some assets because of a decrease in demand attributed to the recent media coverage of “pink slime.”
The company, based in King of Prussia, Pa., said it secured $56 million in financing to continue operating during the bankruptcy process.
AFA Foods, which according to Bloomberg employs about 850 full-time employees, said in the bankruptcy filing that the media’s reporting on “pink slime” has created “changes in the market.”
Beef Products Inc., one of AFA’s competitors, has also experienced a dramatic decline in sales and closed three of its four plants last week.
Until recently, the lean finely textured beef, known to critics as “pink slime,” was added to America’s fast food, school lunches and 70 percent of all ground beef sold at grocery stores.
Due to consumer complaints following recent media reports several fast-food chains and many of the nation’s largest grocery chains have stopped purchasing beef that contains the filler. The U.S. Department of Agriculture also announced that schools that are part of the government’s lunch program will be able to choose whether they purchase lean finely textured beef.
The Associated Press contributed to this report.
"Recalibration of Free Choice"– Mar 3, 2012 (Kryon Channelling by Lee Caroll) - (Subjects: (Old) Souls, Midpoint on 21-12-2012, Shift of Human Consciousness, Black & White vs. Color, 1 - Spirituality (Religions) shifting, Lose a Pope “soon”, 2 - Humans will change react to drama, 3 - Civilizations/Population on Earth, 4 - Alternate energy sources (Geothermal, Tidal (Pedal wheels), Wind), 5 – Financials Institutes/concepts will change (Integrity – Ethical) , 6 - News/Media/TV to change, 7 – Big Pharmaceutical company will collapse “soon”, (Keep people sick), (Integrity – Ethical) 8 – Wars will be over on Earth, Global Unity, … etc.) - New !