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GOOEY Beef Co. Blames Bankruptcy on Slime Justin Sullivan / Getty Images

Beef Co. Blames Bankruptcy on Slime

“Liquidity crisis” indeed. AFA Foods Inc, a national ground-beef processor, filed a bankruptcy petition after facing “an immediate and unanticipated liquidity crisis” following the public outcry over pink slime, a gooey byproduct that comes from excess beef trimmings. After an ABC report about the product, which is used as filler in some ground beef, ground beef containing pink slime was pulled from school cafeterias, supermarkets, and some fast-food restaurants. The FDA says pink slime is safe to eat, but it’s come under fire from ABC, chefs, and other sources. Other beef producers expect a similar drop-off in demand.

April 3, 2012 7:02 AM