Peanut Corp. of America files for bankruptcy

February 13, 2009 12:22:11 PM PST
The peanut processing company at the heart of a national salmonella outbreak has filed for bankruptcy. [SIGN UP: Get headlines and breaking news sent to you]

The Virginia-based Peanut Corp. of America filed Friday for Chapter 7 bankruptcy protection in bankruptcy court in Lynchburg, Va. The company's attorney, Andrew Goldstein, says the filing was "regrettable" but inevitable.

The company said in the filing that its debt and assets both ranged between $1 million and $10 million.

The salmonella outbreak was traced to one of the company's plants in Blakely, Ga., where inspectors found roaches, mold and a leaking roof. A second plant in Texas was shuttered this week. The outbreak has resulted in more than 500 illnesses, led to one of the nation's biggest recalls and may have caused as many as nine deaths.

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