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Re: Topps Meat Co. to liquidate after huge beef recall
NEW YORK, Nov 23 (Reuters) - Topps Meat Co, which in September recalled 21.7 million pounds of beef linked to E. coli-related bacteria, has filed for bankruptcy protection and plans to liquidate.
The company, once one of the largest U.S. makers of frozen hamburgers, filed on Wednesday for protection under Chapter 7 of the U.S. bankruptcy code, papers filed with the U.S. bankruptcy court in Newark, New Jersey, show.
Topps on Sept. 29 recalled beef linked to E. coli O157:h7, a bacteria that can cause diarrhea, dehydration and kidney failure. Children, the elderly and people with poor immune systems are particularly susceptible.
The recall was the fifth-largest of meat or poultry in U.S. history, according to the Department of Agriculture, which opened an investigation into Topps' operations.
Last month, the U.S. Centers for Disease Control and Prevention linked 40 cases in eight U.S. states of E. coli-related illness to the tainted beef.
Topps on Oct. 5 said it would go out of business because it could not afford the costs of the recall, the first in the Elizabeth, New Jersey-based company's 67-year history.
In its bankruptcy filing, Topps said it is cooperating with the agriculture department probe, and is still communicating with customers and third-party storage facilities.
It also listed more than 5,000 creditors, including Tyson Foods Inc and an affiliate of Smithfield Foods Inc, two large meat producers.
Topps is owned by Strategic Investments & Holdings, a Buffalo, New York, private equity firm.
In a larger U.S. beef recall, Hudson Foods Inc recalled 25 million pounds of hamburger in August 1997 after 15 people in Colorado fell ill. Tyson bought Hudson the following January.
Topps' recall prompted the agriculture department to say it will inspect plants more closely, and push companies to announce necessary recalls faster.
"The Topps recall of frozen ground beef products showed us that we needed to strengthen our policies and programs," Richard Raymond, under secretary for food safety, said in prepared Congressional testimony on Nov. 7.
Topps said it is storing its tainted beef in four facilities in New Jersey and Pennsylvania. (Reporting by Jonathan Stempel; Editing by Carol Bishopric and Steve Orlofsky)
