NM peanut butter plant closes, files for Chapter 7

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Associated Press

Posted on October 9, 2013 at 11:02 PM

Updated Thursday, Oct 10 at 12:01 AM

PORTALES, N.M. (AP) — An eastern New Mexico peanut butter plant involved in a nationwide salmonella outbreak last year has closed its doors and filed for Chapter 7 bankruptcy.

Workers at the Sunland Inc. plant in Portales were notified Wednesday that the plant was shut down.

Chapter 7 means the company shuts down and liquidates its assets.

The Food and Drug Administration shuttered the plant in September 2012 after its products were linked to 41 cases in 20 states.

Most of those were linked to natural peanut butter the company made.

The shutdown of the country's largest organic peanut butter processor left many stores scrambling for months to find alternative natural peanut butters.

Sunland reopened last May, but reportedly took a big financial hit from the closure and lawsuits that followed the salmonella outbreak.

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