California-based dairy producer Rizo-Lopez Foods halted production in 2024 following a listeria outbreak. The outbreak led to hospitalizations across several states and resulted in two deaths. A year after the U.S. District Court for the Eastern District of California’s consent decree, the company filed for bankruptcy.
Highlights
- Rizo-Lopez Foods, Inc. filed for Chapter 11 Bankruptcy protection on September 15.
- The FDA shut down the company’s operations in 2024 after its products tested positive for listeria.
- The company’s products tested positive for Listeria contamination.
Rizo-Lopez Foods, Inc. Files for Bankruptcy a Year After a Consent Decree
According to PacerMonitor, California-based Rizo-Lopez Foods, Inc. has filed for bankruptcy. The company filed for Chapter 11 bankruptcy protection on September 15 to restructure its finances. It comes almost a year after the listeria outbreak that halted the company’s operations.
Court records show some required documents are missing from the filing, putting the case at risk of dismissal. The company must now submit all the required documents to the court before the case can proceed. Through Chapter 11 protection, the company aims to restructure its debts and continue operations.
Outbreak in 2024 that Resulted in a Consent Decree
In fall 2024, the U.S. District Court for the Eastern District of California placed Rizo-Lopez Foods under a consent decree. Multiple cases of Listeria monocytogenes were connected to the company’s cheese and other products.
The outbreak led to 26 illnesses in multiple states, which included 23 hospitalizations and two deaths. The outbreak also affected four pregnant individuals, resulting in one pregnancy loss.
The court issued a permanent injunction barring the company from producing or distributing many of its food products. The company was prohibited from manufacturing, processing, packing, repacking, labeling, holding, or distributing many food products from its facilities. They had to take approval from the FDA before resuming operations.
With the consent decree and the food recall, the company faced serious financial strain. Nearly a year later, the company filed for Chapter 11 bankruptcy. Through this filing, the company seeks to find a fresh start and resume operations.
The filing is intended to help the company restructure its debts and develop a reorganization plan. But this will not be possible unless the company submits all the necessary documents to go ahead with the court proceedings. The court has ordered the company to submit the missing documents by September 29, 2025, to avoid dismissal.
