The expense of initiating a peanut recall has just pushed Forward Foods, an energy bar company, into bankruptcy. Luckily, this line of products wasn’t vegan. But this bankruptcy suggests that the recall is a big blow to the finances of every company that’s affected.
From the Bloomberg article:
“A significant value of inventory must be condemned” because of the recall and the company’s ability to collect money owed it for affected products is “very much at risk,” Forward Foods Chief Executive Officer J. Patrick Muldoon said in court filings.
Let’s hope that the companies behind recall-affected vegan products like Clif Bar, Larabar, and Uncle Eddie’s Cookies get through this without too much pain. Link.
