Business & Tech

After E. Coli Outbreak Glenview-Based SoyNut Butter Files For Bankruptcy

Lawsuits against the soy butter maker are put on hold after it files for Chapter 7.

GLENVIEW, IL — SoyNut Butter Co. filed for bankruptcy Friday and said it plans to liquidate its assets, citing a recent E. coli outbreak linked to its I.M. Healthy brand of soy butter. The Glenview-based company first announced a recall of some of its products March 4.

On March 30, the Food and Drug Administration suspended the food facility registration for Dixie Dew Products, the Kentucky-based manufacturer of I.M. Healthy. At the time, the FDA said an inspection of its production facility found "insanitary conditions that could lead to contamination with E. coli."

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This week's Chapter 7 bankruptcy filing from the Glenview-based maker of nut-free peanut butter substitutes acknowledges the company is facing lawsuits from some of the 32 people sickened by its products. According to the Centers for Disease Control and Prevention, 26 of those infected were children, and 12 people required hospitalization.

A lawyer representing seventeen of the victims, Bill Marler of Seattle, said he was not surprised by the filing and expects Dixie Dew to also file for bankruptcy within the next couple months, according to Food Safety News.

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According to its bankruptcy filing, SoyNut Butter generated more than $2.8 million in revenue last year. The company estimates it now has between $1 million and $10 million in liabilities but less than $50,000 in assets and between 100 to 199 creditors.


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