Source: By Ben Forer / ABC News
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.”
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.
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