| NEW YORK
NEW YORK Feb 17 Forward Foods LLC, the maker
of Detour energy bars, filed for bankruptcy protection on
Tuesday after a tainted peanut recall by its supplier, Peanut
Corp of America, forced its own product recall on fears of
salmonella poisoning, according to court documents.
Forward Foods, which makes high protein, snack and meal
replacement bars primarily under the Detour name, filed for
Chapter 11 bankruptcy protection in Delaware, saying that a
significant amount of its inventory must be condemned.
The company had voluntarily recalled all Detour bars that
contained roasted peanuts from Peanut Corp on Jan. 29 on
worries the supplier had distributed peanut products
contaminated by salmonella, an organism that can cause serious
and sometimes fatal infections in young children and the
Sales of Detour products containing peanut product from
Peanut Corp made up about 75 percent of Forward Foods' protein
bar sales, the company said in documents filed with the U.S.
Bankruptcy Court for the District of Delaware.
The company sells its energy bars to health and fitness
clubs as well as convenience and grocery stores.
Minden, Nevada-based Forward Foods is primarily owned by
private equity firm Emigrant Capital Corp. It employs 52 people
and regularly hires an additional 25 temporary workers,
according to court documents.
It had both assets and liabilities of between $10 million
and $50 million, it said in the filing.
Emigrant has agreed to extend $4 million in
debtor-in-possession financing to Forward Foods to help to
operate under bankruptcy protection, subject to court
CIT Group/Commercial Services Inc (CIT.N) and Next Proteins
Inc are among the largest unsecured creditors, according to
The salmonella outbreak has sickened about 600 people, more
than half of them children, and may have killed nine people,
and has been traced to a plant in Blakely, Georgia, operated by
More than 1,800 products have been recalled since
mid-January due to the outbreak, either because they were
linked to Peanut Corp or because such links could not be ruled
The case is In re Forward Foods LLC, US Bankruptcy Court,
District of Delaware, No. 09-10545.
(Reporting by Chelsea Emery; editing by Jeffrey Benkoe)