NEW YORK —
Ground-beef processor AFA Foods said Monday it is filing for Chapter 11 bankruptcy protection and selling its assets after public outcry over the beef filler known as “pink slime” derailed its efforts to save its already-struggling business.
A spokesman said in an e-mail that the company does not rely on boneless lean beef trimmings and uses it only based on customer specifications. But he said the controversy over the ammonia-treated meat filler has drastically reduced demand for all ground-beef products.
AFA Foods, based in King of Prussia, Pa., processes more than 500 million pounds of ground-beef products a year. It distributes to retailers including Wal-Mart Stores Inc., Safeway Inc. and BJ’s Wholesale Club. Fast-food-chain customers include Burger King, Jack in the Box and Wendy’s.
AFA also sells products under the brand names Moran’s, Stone River Ranch and Miller Quality Meats.
In the affidavit filed as part of the bankruptcy, interim chief executive Ron Allen noted that the company has struggled for the past two years in a competitive industry marked by overcapacity and thin profit margins. The Associated Press
