071220 Topps Meat Files For Liquidation

Newark, NJ - The Topps Meat Co., which issued the nation's second-largest beef recall ever, has filed papers to liquidate the company.

Elizabeth-based 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 Sept. 29.

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

Topps 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 in Newark. The company put its assets in the same range.

The bankruptcy was filed Wednesday.

Topps listed about 5,400 creditors in the petition, but gave no amounts that each was 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 have sued Topps when members became ill after eating hamburgers.

Among those listed as creditors were Tyson Foods Inc. 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.

Another creditor appears to be Topps Executive Vice President Anthony L. D'Urso, a member of the family that ran Topps for about 60 years until a controlling interest was purchased in 2003 by Strategic Investments & Holdings, a private-equity firm based in Buffalo, N.Y.

Strategic Investments was also named as a creditor, as were stores that sold Topps products, including Wal-Mart Stores Inc., ShopRite and Pathmark supermarkets, and Rastelli Fine Foods Ltd.

Calls seeking comment Friday from D'Urso and Strategic Investments were not immediately returned, nor did Topps bankruptcy lawyer Warren A. Usatine immediately call back.

A lawyer who represents some families that have sued Topps, William D. Marler, said Topps lawyers have told him the company has $12 million in insurance to cover the claims of E. coli victims.

Topps recalled the meat after some was found contaminated with E. coli O157:H7, a potentially fatal bacteria. To date, 40 people in eight states have been sickened after eating Topps beef, the Centers for Disease Control and Prevention said.

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