Peanut Corp. of America files for bankruptcy

Posted by Colby Rogers - email

PLAINVIEW, Texas (AP) - The peanut processing company at the heart of a national salmonella outbreak has filed for bankruptcy.

Thursday, health officials told Peanut Corp. of America to recall everything ever made at its Texas plant. And then Friday afternoon it filed chapter seven bankruptcy protection in Lynchburg.

The Texas plant has been closed and its products recalled due to alleged health violations.

Texas health officials say inspectors found dead rodents, feces and feathers in a crawl space above a production area of the Peanut Corp. of America plant.

The Texas Department of Health and Human Services issued the order Thursday and says an air handling system was pulling debris from the crawl space into areas where products were processed.

The plant in the Panhandle city of Plainview employs about 30 people and operated unlicensed and uninspected for nearly four years since it opened in 2005.

The Virginia-based Peanut Corp. is already under a federal criminal investigation. The outbreak has sickened 600 people and may have caused at least nine deaths nationwide.

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