TribLIVE

| Business


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

Tons of peanut butter being dumped into New Mexico landfill

Daily Photo Galleries

Business 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.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Findlay company owed another $27M, judge decides
  2. Health insurers will refund $5.2M to Pa. subscribers, group plans
  3. Rising number of health care workers have less than 4-year degree, study shows
  4. Dick’s cuts PGA professionals as golf business declines
  5. Wabtec 2Q profit jumps 18.9%; raises forecast for year
  6. Wesco posts higher profit, lowers full year outlook
  7. EQT posts $110.9 million profit in latest quarter
  8. Europe thirsts for U.S. craft beer
  9. Federal appeals courts disagree on Obamacare subsidies
  10. Study: Google dominates driverless car buzz
  11. 1,600 StubHub accounts breached, N.Y. official says
Subscribe today! Click here for our subscription offers.