February 25, 2008

Hallmark discloses imminent closure

After last week's record recall of 143-million-pound of beef from Hallmark, the general manager said the company would likely close permanently.

Hallmark/Westland, temporarily shut operations after USDA acted on a video showing the company employees abusing downer cattle.

The company was allowed to reopen only if they meet certain conditions set by the USDA.

General manager Anthony Madigow doubted the possibility of reopening the plant following the massive recall of their products.

Madigow explained that cash flow has become an issue as some customers have stopped payment for product.

Futhermore, government officials last week said Hallmark/Westland would be required to pay costs associated with destroying and replacing meat supplied to the National School Lunch Program.

Madigow also informed that some 250 workers have already been laid off, while only a small group of managers remain at the company to manage the recall.