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Ranchers.net

Hallmark/Westland likely to close permanently

By Alicia Karapetian on 2/25/2008 for Meatingplace.com

Hallmark/Westland Meat Packing Co., which last week issued the record-breaking 143-million-pound beef recall, will likely close permanently, the Chino, Calif.-based processor's general manager told the Wall Street Journal.

Hallmark/Westland, which temporarily shuttered operations per USDA request following the discovery of a video showing employees abusing downer cattle, would be allowed to reopen if it met certain conditions outlined by USDA.

General Manager Anthony Madigow doubted that would happen. "I don't see any way we could reopen," he told the Journal. "We are a small private company."

Cash flow has become an issue for the processor as some customers have stopped payment for product that was among the 143 million recalled pounds, Madigow said.

What's more, 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.

"If the USDA wants payment back, we're dead meat," Madigow said. "We're done. There's no way we could pay it all back."

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