Japanese meat processor Nippon Shokuhin has filed for bankruptcy protection following difficulties related to an outbreak of BSE in Japan and the Snow Brand mislabelling meat scandal.
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Nippon Shokuhin joins a long list of 62 companies that have gone bankrupt following the mad cow disease outbreak, with their combined debts amounting to ¥38.7bn (US$322m), an official of research firm Teikoku Data Bank told is reported as saying. Nippon Shokuhin’s debt is said to be the largest among these companies.
The company has filed for court protection from creditors at the Fukuoka District Court in western Japan, and is struggling with some ¥21.9bn of liabilities, a company official said.
As well as the BSE difficulties, Nippon Shokuhin was also involved in a scandal involving the relabelling of imported beef as domestic in a ploy to gain government subsidies under a beef buyback programme. Nippon Shokuhin is reported to have gained ¥100m in subsidies before the fraud, which brought down Snow Brand Foods Co, was discovered.
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By GlobalData
