The company at the center of a salmonella outbreak investigation has filed for bankruptcy.Peanut Corporation of America, whose Blakely, Georgia plant is being labeled as a source for the recent salmonella outbreak, filed a Chapter 7 bankruptcy petition in the U.S. Bankruptcy Court for the Western District of Virginia, claiming the negative economic effects of the recalls have been "extremely devastating" to the company's financial condition. Under Chapter 7 companies liquidate their assets to pay back creditors as opposed to reorganizing
To date, more than 600 people nationwide have been sickened and nine deaths may be tied in to the company's practices. Some 1,800 products have been recalled since mid-January due to the outbreak.
Earlier in the week, Peanut Corp. owner Stewart Parnell would not answer questions before Congress, citing rights under the U.S. Constitution.
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