Peanut Corp. of America Files Bankruptcy Papers

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.

Blakely Peanut Plant Raided by Federal Agents

Federal agents on Monday raided a Blakely peanut processing plant that is at the center of a salmonella investigation.

According to authorities, federal agents took with them boxes and other materials from the Peanut Corp. facility. Law enforcement also raided the company's headquarters in Lynchburg, Va.

Monday's raid comes less than a week after Food and Drug Administration investigators said the company knowingly shipped products from its Georgia plant after tests indicated the products were contaminated.

To date, more than 500 people have fallen ill to the salmonella outbreak, with eight deaths being investigated.

Salmonella Problem Impacts Local Boy Scouts

The salmonella contamination that was traced to a Blakely plant has now impacted local boys scouts.

According to officials with the Scouts, there has been a recall of a popcorn product sold by Scouts during recent fundraising drives. To date, there have been no reports of illnesses related to the product, but the measure is being taken as a precautionary step.

Trail's End Caramel Corn with Peanuts, with code dates of Jan. 19, 2008 through July 23, 2009, has been voluntarily recalled by the Weaver Popcorn Co.

Scout leaders have been sent e-mails about the recall and notices are posted in Scout offices. Scouts accepted orders for the popcorn in 2008 and the majority were delivered prior to the holidays.

To date, there have been more than 500 reported cases of salmonella across the country that authorities say are linked to the Georgia plant. Eight people have died, although officials cannot confirm that those deaths are a direct link to the plant.

Report Says Mildew, Other Problems Found at Plant

According to a report released Monday by the state Department of Agriculture, investigators discovered mildew on a ceiling and other problems in 2008 at a peanut butter producing plant in Georgia that has been linked to a Salmonella outbreak.

The Centers for Disease Control and Prevention has reported approximately 500 cases of salmonella illnesses in 43 states from the most recent outbreak, and says the bacterial infection may have been a factor in seven deaths.

Responding to the just released report, Peanut Corp. of America says, however, the problems were minor and were generally taken care of. The company halted production this month at its Blakely plant and has conducted a nationwide recall of peanut butter and peanut paste produced at its facility after July 1 of last year.

Noting an inspection report from Aug. 23, 2007, The New York Times highlighted at least three incidences in which "food-contact surfaces" were "not properly cleaned and sanitized."

In an apparent counter to the Times article, PCA released a statement noting, "When the observations were noted during inspections by the Georgia Department of Agriculture, corrective action was taken immediately where possible and subsequently when immediate action was not possible."

In an Oct. 23, 2008 report, an inspector reportedly discovered"mildew and possibly some static dust on ceiling of butter storage room." The report did not specify the amount of mildew.

A June 2008 inspection of PCA's Blakely plant discovered violations that included dust buildup on a fan in the butter room, and "possible metal flakes from metal scrubber which is used to clean outside of equipment," according to an inspection report. The report did not note where the flakes were discovered.

PCA reports that the peanut butter and peanut paste made at the Blakely plant were sold in bulk to manufacturers, and that the recall does not include any peanut butter jars sold directly to consumers.

Salmonella Found in Some Peanut Butter at Georgia Facility

Health officials say that laboratory tests conducted by the Georgia Department of Agriculture have confirmed Salmonella contamination in some peanut butter manufactured by the Peanut Corporation of America (PCA) processing facility in Blakely.

According to an official, the sample that tested positive was from an unopened five-pound tub of King Nut Creamy Peanut Butter with “Best Before 1/07/10” collected at the plant by one of the GDA inspectors.

The testing was done in response to see if this is the type of Salmonella linked to illnesses nationwide. Health officials report that six people have died nationwide from a Salmonella outbreak, with more than 450 sickened in 43 states.

According to officials, PCA stopped production of peanut butter at its Blakely plant last week.