Texas peanut plant at heart of salmonella outbreak goes bust
June 8, 2009, 1:14PM
PLAINVIEW — The Texas subsidiary of the company at the heart of this year’s salmonella outbreak has filed for bankruptcy.
Plainview Peanut Co., LLC — a subsidiary of Peanut Corporation of America — filed for Chapter 7 last month in Lynchburg, Va. That’s the same court where the parent company filed for liquidation protection three months ago.
The shuttered Texas plant was fined a record $14.6 million by the state in April over alleged violations that include unsanitary conditions and product contamination.
The plaint in Plainview, about 300 miles northwest of Dallas, voluntarily closed Feb. 9.
The national outbreak sickened more than 600 people, may have caused nine deaths and led to one of the largest product recalls in U.S. history.
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