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Wednesday, February 18, 2009

Forward Foods LLC, Maker of Detour Bars, Files for Bankruptcy

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 the company to recall many of its own products on fears of possible salmonella poisoning.

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 on Jan. 29 had voluntarily recalled all Detour bars that contained roasted peanuts from Peanut Corp.

A salmonella outbreak traced to one of Peanut Corp’s plants led to one of the biggest product recalls in U.S. history. The salmonella outbreak sickened 600 people, more than half of them children, and it may have killed nine people. The contamination has been traced to a Peanut Corp plant in Blakely, Georgia.

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.

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Source: Reuters

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