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Detour Bar’s company files for bankruptcy

20 February 2009 No Comment

detourbarIt begins…. because of the peanut recall from PCA (Peanut Corp of America), companies like Forward Foods, which makes the Detour Bars, are suffering big time. On Tuesday, they filed Chapter 11 bankruptcy. Recall insurance is expensive, and many of these companies just don’t carry it. Here is the press release on it.

NEW YORK, Feb 17 (Reuters) – Forward Foods LLC, the maker of Detour energy bars, filed for bankruptcy protection on Tuesday after a tainted peanut recall by its supplier, Peanut Corp of America, forced the company to recall many of its own products on fears of possible salmonella poisoning.

Forward Foods, which makes high-protein, snack and meal replacement bars primarily under the Detour name, filed for Chapter 11 bankruptcy protection in Delaware, saying that a “significant” amount of its inventory must be condemned.

The company on Jan. 29 had voluntarily recalled all Detour bars that contained roasted peanuts from Peanut Corp.

A salmonella outbreak traced to one of Peanut Corp’s plants led to one of the biggest product recalls in U.S. history. The salmonella outbreak sickened 600 people, more than half of them children, and it may have killed nine people. The contamination has been traced to a Peanut Corp plant in Blakely, Georgia.

Sales of Detour products containing peanut product from Peanut Corp made up about 75 percent of Forward Foods’ protein bar sales, the company said in documents filed with the U.S. Bankruptcy Court for the District of Delaware.

Source:getbig.com

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