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Topps Meat Company, which issued the second-largest beef recall ever, has filed papers to liquidate the company due to Bankruptcy.

Topps was one of the largest makers of frozen hamburgers before potentially fatal bacteria were found in its patties, compelling it to halt production and issue the recall in September of 2007.

Six days later Topps said it was closing its doors, after it was forced to issue the recall of 21.7 million pounds of frozen hamburger, which is one year's worth of production.

In September, the USDA said three people were confirmed as getting E. coli from Topps products, with 22 other cases under investigation. Cases of E. coli food poisoning were found in Connecticut, Indiana, Maine, New Jersey, New York, Ohio, Florida, and Pennsylvania.

Topps Meat Co. has up to 10,000 creditors and liabilities of $1 million to $100 million, according to its Chapter 7 filing in U.S. Bankruptcy Court. The company listed about 5,400 creditors in the petition, but gave no amounts that each were owed. Nearly all appeared to be individuals who sought refunds for boxes of frozen hamburgers. The creditors included at least one of the families who filed a lawsuit against Topps when members got food poisoning after eating hamburgers.

Also listed as creditors were Tyson Foods of Chicago, and the U.S. Department of Agriculture's Food Safety and Inspection Service, the agency investigating the source of the E. coli contamination.

An attorney representing some families said Topp's legal team has told him the company has $12 million in insurance to cover the claims of E. coli victims.

Topps recalled 21.7 million pounds of frozen hamburgers after some meat was found contaminated with E. coli O157:H7. To date, 40 people in eight states have been sickened after eating Topps beef, the Centers for Disease Control said.

The beef recall prompted the USDA to announce changes in how it will inspect meat plants.

Topps burgers contained at least three versions of the O157:H7 strain of E. coli, which can be fatal to people. The strain is harbored in the intestines of cattle and can also get on their hides. Improper butchering and processing can cause the E. coli to get onto meat.

Topps products were sold under the Topps brand as well as Pathmark, Roma-Topps, ShopRite, Mike's, Kohler Foods, Rastelli's Fine Foods, Sam's Choice, Sand Castle, and West Side labels. All recalled products will have a USDA establishment number of ET 9748 on the back panel of the package.

Much of the meat had already been eaten, but stores and consumers are being urged to check freezers for any remaining packages, which can be returned.

Reference:

"Topps will liquidate company after massive beef recall," AP, November 2007.