Apparently it's going to take more than a couple of governors chowing on a burger to save pink slime: AFA Foods, a leading manufacturer of "boneless lean beef trimmings," today filed for Chapter 11 bankruptcy protection, citing a steep drop-off in demand for its products. AFA will this week suspend operations at a California plant, reports the Wall Street Journal, and had previously struggled before a plan to return to profitability "was quickly undermined by market forces beyond the debtors' control," according to court documents.
"Almost all retail grocery stores have succumbed to public pressure to reduce or eliminate the sale of products containing BLBT, as well as public requests to prominently label products containing BLBT," said AFA. As a result, instead of the boost normally provided by the beginning of barbecue season, sales slumped. AFA has $56 million in financing to see it through Chapter 11 proceedings. (More Chapter 11 stories.)
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