Plainview Peanut Plant Files for Chapter 7 Bankruptcy

Staff Report

The Associated Press

PLAINVIEW, Texas (AP) - The Texas Panhandle 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 Corp. 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 West Texas plant was fined a record $14.6 million by the state in April over alleged unsanitary conditions and product contamination.

The Plainview unit voluntarily closed Feb. 9.

An attorney in the May 22 bankruptcy filing for the Plainview plant was uncertain whether the Texas site's assets and debts were included in the parent company's filing.

The national outbreak sickened more than 600 people, may have caused nine deaths and led to 1 of the largest product recalls in U.S. history.