“Pink Slime” Processor Goes Bankrupt

As demand for ground-beef products drops dramatically, AFA Foods faces bankruptcy and staff layoffs.


National ground-beef processor AFA Foods has filed for bankruptcy, citing what it calls “an unfounded public outcry” over ammoniated beef trimmings, more commonly referred to as “pink slime.” The company, which is partially owned by retired basketball star Magic Johnson, says it supplies its products to supermarkets Safeway and Walmart, as well as fast-food giants Burger King and Wendy’s—all of which have discontinued their use of the substance. The company’s chief executive Ron Allen says the controversy surrounding the substance has “dramatically reduced demand for all ground-beef products,” despite the US Department of Agriculture’s persistent claims that it is safe. Just last week, ammoniated-beef processor Beef Products Inc. was forced to temporarily suspend operations at three of its four facilities.

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