TribLIVE

| Business

 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Tons of peanut butter being dumped into New Mexico landfill

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

Daily Photo Galleries

By The Associated Press
Saturday, March 29, 2014, 12:01 a.m.
 

Nearly a million jars of peanut butter are being dumped in a New Mexico landfill to expedite the sale of a bankrupt peanut-processing plant that was at the heart of a 2012 salmonella outbreak and nationwide recall.

Bankruptcy trustee Clarke Coll said he had no other choice once Costco Wholesale refused to take shipment of the Sunland Inc. product and declined requests to let it be donated to food banks, repackaged or sold to brokers who provide food to institutions such as prisons.

“We considered all options,” Coll said. “They didn't agree.”

Costco officials did not return telephone calls seeking comment.

Court filings indicate the product was made with $2.8 million worth of Valencia peanuts owned by Costco and had been sitting in the warehouse since the company shut down and filed for bankruptcy last fall.

After extensive testing, Costco agreed to a court order authorizing the trustee to sell it the peanut butter. But after getting eight loads, Costco rejected it as “not merchantable” because of leaky peanut oil.

Subscribe today! Click here for our subscription offers.

 

 


Show commenting policy

Most-Read Business Headlines

  1. Trib Total Media puts 9 Western Pa. newspapers up for sale
  2. Cabrio is lively, luxury alternative to muscle car
  3. Turbulent week on Wall Street leaves investors wondering what’s next
  4. Mylan shareholders approve $34 billion hostile takeover bid for Perrigo
  5. Regulators expect lawsuit over oil, gas rules process
  6. Mazda 6 is a real ‘looker’ — gets more glances than sales
  7. Busy Beaver Home Improvement Centers join True Value co-op
  8. Rankings: CEO pay 200 times median
  9. Marcellus shale drillers, Pa. settle 3 cases of fouling water supplies, pay $374K
  10. Clean Air Council challenges Sunoco Pipeline’s public utility status
  11. Unregulated vape shops fear FDA crackdown