A "Pink Slime"-Using Beef Producer Files For Bankruptcy

Not pink slime, but pink and slimy.
Not pink slime, but pink and slimy.
Flickr user aMichiganMom
The Wall Street Journal reports that AFA Foods, which contributes to about 2% of total U.S. beef production, has filed for bankruptcy protection. 
The company's products are sold by Wal-Mart Stores Inc., Burger King Holdings Inc., Jack in the Box Inc., Carl Karcher Enterprises Inc., Wendy's Co. and Del Taco Inc. But it has seen demand drop amid the recent controversy. 

It had already been struggling with profitability and negotiated a debt-extension, but then the "pink-slime" news hit. "It came at exactly the wrong time for the company," a person speaking for the company said.

The company will now continue operations producing beef without the additive.

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