Health|February 18, 2009 7:23 am

Salmonella Outbreak Leads Peanut Corp Of America To Bankruptcy

The nationwide salmonella outbreak linked to peanut butter products has sent the Peanut Corp. of America into bankruptcy.<br /> ....Washington (dbTechno) – The nationwide salmonella outbreak linked to peanut butter products has sent the Peanut Corp. of America into bankruptcy.

The salmonella outbreak has been traced back to the Blakely, Georgia plant of the Peanut Corp. of America.

It is believed that peanut butter and peanut paste coming out of this factory helped with the spread of the salmonella bacteria.

Last Friday, the company announced that they are seeking bankruptcy protection.

They have filed a Chapter 7 bankruptcy petition in the U.S. Bankruptcy Court for the Western District of Virginia.

They stated that the reason was due to the negative economic impact that recalls were having on their business.

The company is hoping to be able to use this protection to repay back old debt, liquidate assets, etc.

The salmonella outbreak has led to over 600 people being ill, and causing 9 deaths.



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