Market Features
Report: Meatpacker Says It's Likely to Close
TSC Staff
02/23/08 - 03:54 PM EST
The Hallmark/Westland Meat Packing Company, which last week issued the largest beef recall in U.S. history, probably will shut down permanently, according to a published report.
"I don't see any way we could reopen," said Anthony Magidow, the company's general manager, who was quoted in a report by The Wall Street Journal.
Magidow said the company's cash had become tight as some customers of beef that was recalled stopped payment on their checks, the report said. He added that the company would be "dead meat" if the U.S. Department of Agriculture requires the company to pay for the destruction and replacement of the recalled beef. On Thursday, regulators said they plan to require that the company cover those costs.
In early February, the U.S. Department of Agriculture began investigating the company's Chino, Calif. plant for inhumane treatment of animals after the Humane Society of the United States released an undercover video showing workers trying to force injured or sick cows to stand with fork lifts and electric-shock devices, the report noted. Inability to stand is a symptom of bovine spongiform encephalopathy, or mad-cow disease, and so-called "downer" cows typically are not allowed to enter the food supply. The company shut down operations when the investigation began.
Then on Feb. 17, the USDA ordered the recall of 143 million pounds of fresh and frozen beef that had come from the plant. The agency said it had more evidence that Westland/Hallmark had let some downer cows go to slaughter after the cows had previously passed a preslaughter inspection. In such cases, meatpackers are required to contact USDA veterinarians for an additional inspection.
Hallmark/Westland was a major supplier to the National School Lunch Program.