Massive Food Recall and Financial Dealings: Bil Mar Foods' Turkey Franks and Norwest's Auto Loan Acquisition

Strategic Insights -

Bil Mar Foods, a unit of Sara Lee Corp., has issued a massive food recall of nearly 15,000 pounds of turkey franks distributed in 13 states after discovering elevated moisture levels in some of the meat packages. The recall, voluntarily issued by the company, affects 4,856 three-pound packages of Mr. Turkey Jumbo Franks with an Oct. 1 sell-by date. Meanwhile, Norwest Financial Inc., the consumer-finance unit of Norwest Corp., has agreed to buy about $375 million in auto loans from NationsBank Corp.'s SunStar Acceptance Corp.

Key Takeaways:

  • The recall affects 4,856 three-pound packages of Mr. Turkey Jumbo Franks with an Oct. 1 sell-by date, which were distributed in 13 states, including North Carolina.
  • The company's decision to issue the recall was based on the discovery of elevated moisture levels in some of the meat packages.
  • There have been no reported illnesses or complaints related to the recalled product, according to Steve Lombardi, a spokesman for the U.S. Department of Agriculture's Food Safety and Inspection Service.
  • People are being urged to return the product to the store where it was bought to receive a refund.
  • The USDA's toll-free meat and poultry hotline is available for people with questions at (800) 535-4555.
  • Norwest Financial Inc. will buy 46,000 accounts from SunStar Acceptance Corp. as part of the $375 million auto loan acquisition.
  • The acquisition comes as some auto lenders have experienced difficulties this year, and some finance companies have stopped making high-risk auto loans.
  • The deal is expected to close in the fourth quarter.

Statistics:

  • 4,856 three-pound packages of Mr. Turkey Jumbo Franks are being recalled.
  • 15,000 pounds of turkey franks were distributed in 13 states.
  • $375 million in auto loans will be acquired by Norwest Financial Inc.
  • 46,000 accounts will be purchased from SunStar Acceptance Corp.

Sources:

  • Bloomberg News
  • U.S. Department of Agriculture's Food Safety and Inspection Service
  • Norwest Financial Inc.
  • NationsBank Corp.
  • Sara Lee Corp.