A Pennsylvania-based ground beef producing plant, AFA Foods Inc., has filed for chapter 11 bankruptcy in the U.S. Bankruptcy Court in Delaware.
According to the filing, the company listed assets at nearly $219.6 million and debts at $197.3 million. Officials with AFA Foods have stated that their financial troubles started before the media uprising began over a filler used in many ground beef products, called “pink slime.”
Officials in the supermarket industry have stated that the decline in ground beef products began before the pink slime videos were released, but since then supermarkets have asked suppliers to stop using it in their products.
Many plants have fallen back on other meat products, but AFA only produces ground beef so the decline in sales has been very difficult for them.
If your business has been struggling with debt and you need experienced representation to discuss your financial options, contact the Cedar Rapids Chapter 11 bankruptcy lawyers of the Hong Law, PLC today by calling 319-623-1400.
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