Topps files for bankruptcy after recall

Topps files for bankruptcy after recall

	Published : Fri, 23 Nov 2007 17:07 By : Agencies Print this Story

NEWARK, N.J. (AP) - The Topps Meat Co., which issued the nation's second-largest beef recall ever, has filed for bankruptcy.

Elizabeth-based Topps said it will liquidate the company, which was one of the largest makers of frozen hamburgers before potentially fatal bacteria were found in its patties, compelling it to halt production and issue the recall.

Topps said Oct. 5 that it was closing its business, six days after it was forced to issue the recall of 21.7 million pounds of frozen hamburger, which is one year's worth of production.

Topps has up to 10,000 creditors and liabilities of $1 million to $100 million, according to its Chapter 7 filing in U.S. Bankruptcy Court in Newark. The company put its assets in the same range.

The bankruptcy was filed Wednesday.

Topps listed about 5,400 creditors in the petition, but gave no amounts that each were owed. Nearly all appeared to be individuals who sought refunds for boxes of frozen hamburgers. The creditors included at least one of the families who have sued Topps when members became ill after eating hamburgers.

Also listed as creditors were Tyson Foods Inc., of Chicago, and the U.S. Department of Agriculture's Food Safety and Inspection Service, the agency investigating the source of the E. coli contamination.

Another creditor appears to be Topps executive vice president Anthony L. D'Urso, a member of the family that ran Topps for about 60 years until a controlling interest was purchased in 2003 by Strategic Investments & Holdings, a private-equity firm based in Buffalo, N.Y.

Messages seeking comment Friday from D'Urso, Strategic Investments and Topps bankruptcy lawyer Warren A. Usatine were not immediately returned.

Topps recalled the meat after some was found contaminated with E. coli O157:H7, a potentially fatal bacteria. To date, 40 people in eight states have been sickened after eating Topps beef, the Centers for Disease Control said.

The recall prompted the USDA to announce changes in how it will inspect meat plants. After being criticized for foot-dragging, the USDA also said it would move faster to encourage recalls. The agency cannot issue recalls.

Topps products were sold under the Topps brand as well as Pathmark, ShopRite, Mike's, Kohler Foods, Rastelli's Fine Foods, Roma-Topps, Sam's Choice, Sand Castle, and West Side labels. All recalled products will have a USDA establishment number of EST 9748 on the back panel of the package or in the USDA logo.

Much of the meat had already been eaten, but stores and consumers are being urged to check freezers for any remaining packages, which can be returned.