Public Reaction Closes Meat Plant

Beef processor AFA Foods Inc., part-owned by NBA great Magic Johnson, has filed for bankruptcy protection and blamed, in part, bad publicity over "pink slime," according to a report in the Los Angeles Times.
The company has two processing plants in Vernon, as well as five others nationwide, according to the report.
The beef product known as pink slime or lean finely textured beef is seen on a tray during a tour March 29 of the Beef Products Inc. plant in South Sioux City, Neb., where the beef product is made. The governors of Iowa, Texas and Kansas and lieutenant governors of Nebraska and South Dakota toured the plant to show their support for the company and the several thousand jobs it creates in Nebraska, Iowa, Kansas, South Dakota and Texas.
The beef product known as "pink slime" or lean finely textured beef is seen on a tray during a tour March 29 of the Beef Products Inc. plant in South Sioux City, Neb., where the beef product is made. The governors of Iowa, Texas and Kansas and lieutenant governors of Nebraska and South Dakota toured the plant to show their support for the company and the several thousand jobs it creates in Nebraska, Iowa, Kansas, South Dakota and Texas.
According to CBS News Los Angeles, one of the Vernon plants is shutting down in the wake of the public response against the sterilizing meat filler. Roughly 850 workers at AFA, which is owned by Los Angeles-based private equity firm Yucaipa Cos. and Johnson, are facing layoffs, the report said.
AFA supplies beef to Safeway, Wendy's, Wal-Mart, Burger King and Carl's Jr., CBS said.
ABC News reported that the company, based in King of Prussia, Pa., secured $56 million in financing to continue operating during the bankruptcy process.