Summary Box: AFA Foods files for Chapter 11

AP News
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Posted: Apr 02, 2012 12:29 PM
Summary Box: AFA Foods files for Chapter 11

THE HEADLINE: Ground beef processor AFA Foods is filing for Chapter 11 bankruptcy protection and selling its assets after the public outcry over the beef filler known as "pink slime" derailed its efforts to save its struggling business.

THE BACKGROUND: Interim CEO 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 COMPANY: AFA Foods processes more than 500 million pounds of ground beef products a year.