Meatpacker to close after major U.S. recall, report

NEW YORK (CNNMoney.com) -- -- The meatpacking company that issued the largest U.S. meat recall ever last week could shut down, according a Saturday report in the Wall Street Journal.

U.S. Department of Agriculture recalled 143 million pounds of meat processed by Hallmark/Westland Meat Packing on Feb. 17, after it came to light that the company had on "rare occasions" slaughtered cows that couldn't stand on their own. (Please see correction below.)

Federal rules prohibit slaughtering downer cows, because they are believed to be more prone to illnesses like mad cow disease.

The meatpacker suspended its operations voluntarily in early February, after the U.S.D.A. launched an investigation into how it treated animals after a video showed employees attempting to force sick cows to stand up using electrical-shock devices, among other methods.

The U.S.D.A. said it would permit the slaughterhouse to reopen under certain conditions. But Hallmark/Westland, a major supplier for the National School Lunch Program, must repay the cost of destroying the meat purchased by the program.

The company's general manager Anthony Magidow told the Journal, "If the USDA wants payment back, we're dead meat. We're done."

He told the newspaper that the company has already laid off 250 workers, and that prior to this episode the company earned about $100 million annually.

An earlier version of this story incorrectly stated that 143 pounds of meat were recalled.