Menu Foods To Cut More Jobs As Costs From Pet Food Recall Increase

HendersonIt seems like there is no end in sight to the troubles that Menu Food is going through after their massive pet food recalls that began in March.

Today the company announced that the costs from the pet food recalls have increased to $56 million instead of the initial $46 million they estimated. Due to these rising costs, they are cutting its work force by another 10-15 percent to reduce the company’s operating costs.

Menu Foods raised its estimate of recall expenses “because the volume of customer returns and associated costs are now estimated to be greater than originally anticipated.”

Menu Foods’ President and CEO Paul Henderson (pictured here on right with Executive Vice-President Dr. Richard Shields) and other top executives are “sharing the pain” of the pet food recall aftermath.

Henderson will reduce his salary by 22 percent. In 2006, Henderson made $873,721 in salary, bonuses, and incentives. (Oh sorry Paul, perhaps you may need to cancel your membership to the country club.) Other senior executives will have a 17 percent pay cut, and board of directors will also see a decrease of 20 percent.

The company also announced the completion of the sale of their production facility in North Sioux City, South Dakota to Mars, Incorporated. The South Dakota plant accounted for about 16 percent of production and 14 percent of the company’s work force.

Source: Bloomberg, Report on Business, CBC News

(Thanks Bill, 5CatMom, menusux)

34 Responses to “Menu Foods To Cut More Jobs As Costs From Pet Food Recall Increase”

  1. Judy says:

    Well BOO HOO HOO Maybe they should have pulled their bad food off the shelves as soon as they knew there was a problem. I hope some of that money is going to pet parents.

    By my calculations that still gives Mr. CEO $760,874.48 in pay. I really feel bad.

  2. 2CatMom says:

    So this guy was getting over 3 quarters of a million dollars to put sh-t in cans.

    Let me get out the worlds smallest violin for the poor Menu Foods executives. How about they donate another 22% of their salaries to a fund to reimburse owners of pets killed or maimed by their greed.

  3. DT says:

    You people make me sick who cares what happens to your company!!!Maybe you shouldn’t even be a company. Which brings me to my next point why and how are you still in bussiness?

  4. Radcliff, Allie, Luna, & Ozzie says:

    Look on the bright side, Mr. Henderson. You likely have tons of allegedly human-grade meat and grain in various warehouses.

    Bon Appétit.

  5. Lynn says:

    No sympathy from me. None at all.

  6. doxies 4 says:

    If they hadn’t used “c - - p” in their products in the 1st place, there would have been no need for a recall and they wouldn’t have lost $$$ - - not that I feel sorry for them one little bit.

  7. insurance » Menu Foods To Cut More Jobs As Costs From Pet Food Recall Increase says:

    […] Emily Huh wrote an interesting post today on Menu Foods To Cut More Jobs As Costs From Pet Food Recall IncreaseHere’s a quick excerptToday the company announced that the costs from the pet food recalls have increased to $56 million instead of the initial $46 million they estimated. Due to these rising costs, they are cutting its work force by another 10-15 percent to … […]

  8. menusux says:

    Just a note for those of you who may still be fencing with MF over claims. On our Forums, we have the FDA Enforcement Reports for October 3 and October 10 which list all the MF products. These recalls are classified as ongoing, which means all of the units of the tainted products have not been accounted for, so, according to FDA, the recall is still very much alive.

    You might want to remind MF of this if they’re giving you a hard time.

    http://itchmoforums.com/news-r.....202.0.html

    October 3, 2007

    http://itchmoforums.com/news-r.....246.0.html

    October 10, 2007

    The links to these enforcement reports on the FDA website are included in these threads.

  9. Judy says:

    I have no claim but I have returned recalled food to the stores I purchased it in and on at least one occassion I found the returned food back on the shelf. Needless to say I raised quite a fuss and after that I wrote with a black marker BANNED on the can right on the upc before I returned any more.

    This company makes me sick. Since most of these brands have returned to the shelves how would you be sure it’s not the old stuff or for that matter how can you be sure it’s safe. I’m not buying any of the banned foods again, I have no faith in the manufacturing or the brand names.

  10. purringfur says:

    …Only making three quarters of a million bucks in a year now… I’m soooooo sad for your self-induced salary cut, Henderson. That’s some magnanimous sacrifice you made, isn’t it?

    That REALLY shows you can identify with the lives of your HOURLY employees! Think you’ll endure a lot of hardship trying to eke out an existence on a meager $750,000, instead of $830,000?

    If you really want to share the pain… Why don’t you try living on a “mere” $100,000 a year and use the rest of your inflated salary to help pay for the vet bills for the thousands and thousands of sick and dead pets for the next 10 years? THAT, and apologizing repeatedly, would show you are “sharing the pain!” Cutting your salary to $750,000 just doesn’t seem to do it.

    Henderson, your actions make me sick — rolling in your money and wallowing in your greed! Does it at all bother you that YOU ARE SO DESPISED or are you immune because you are so out of touch with real people and real pain?

    Just skulk away to some dark corner and chow down on some pouched pet food!

  11. Katie says:

    Mr Henderson, I don’t feel sorry for you at all! I do feel sorry for your employees who you probably took advantage of and lied to just like the pet parents. If you really cared for your company and it’s employees, you should forego pensions, bonuses, etc.,etc. That goes for the VP, and all the directors of the company as well as the board. Actually, your shareholders and employees should sue you for their losses.
    Might be a wake-up call for all the PFI.

    Worrying about your personal pocketbook instead of all the people you lied to, all the animals you killed and sickened says alot about what kindof person you really are. I hope the shareholders boot you out on the street.

    Katie

  12. Carol says:

    So Mr H thinks the pain involves money-he’s taking a paycut to “share the pain”. Mr H go to the Forums here at Itchmo and see the pix of my cat—that is PAIN!

  13. Carol says:

    PS: the sick picture of Smudge is on Suggestions/Help under HowDoIPost Pix in case you actually read these posts! and that pix is after a week at home after 8 days of IV’s in the hospital!

  14. Pukanuba says:

    “Henderson, your actions make me sick — rolling in your money and wallowing in your greed! Does it at all bother you that YOU ARE SO DESPISED or are you immune because you are so out of touch with real people and real pain?

    Just skulk away to some dark corner and chow down on some pouched pet food!”

    Purringfur: Beautiful, just beautiful. Couldn’t have said it better myself….I cheered out loud when I read your post.

    I’d be happy to go meet up with Mr. H. & cook him a nice meal……how about cuts & gravy stew? Maybe all of us should go & present him with a different dish that he & his other “poor” suits can chow down on now that they’re going to “sacrifice” so much for the good of the company. Geez, must be tough to try to live on 760k a year. You can’t imagine how we all cry for you…….maybe you’d be so kind as to take half of that each year & start paying out to all the pet parents who are in hock up to their a** trying to pay off vet bills because of the poison you put on shelves & called pet food. How silly of me to ask you to be kind. You probably don’t know the meaning of that word.

    Excuse me while I go barf…….

  15. Anonymous says:

    Bon Appétit Mr. Henderson!

    Try eating some of the crap you shoved on us!

  16. Anonymous says:

    2.26
    -0.06 (-2.59%)
    Oct 10 - Close Open: 2.30 Mkt Cap: 65.50M P/E: N/A Dividend: N/A
    High: 2.30 52Wk High: 7.47 F P/E: N/A Yield: N/A
    Low: 2.25 52Wk Low: 1.98 Beta: 0.21 Shares: 28.98M
    Vol: 8,900.00 Avg Vol: N/A EPS: -1.00 Inst. Own: N

    ONLY .06 cents???? Why not $2.26 drop ? It aint worth .000000001

  17. Anonymous says:

    For anyone interested there is going to be another hearing.

    “THURSDAY, OCTOBER 11, 2007
    Diminished Capacity: Can the FDA Assure the Safety and Security of the Nation’s Food Supply? – Part III”

    Should be interesting to see what the investigators have to say this time. Tyson Foods, Acheson from the FDA are on the witness list among others.

    http://energycommerce.house.go.....dule.shtml

    Oh, and Menu Foods big wigs and all companies responsible for importing or using untested, uninspected, low quality contaminated food (pet and otherwise), toys, etc…..May God have mercy on your souls. What good will your money do when you are standing at the gate? Will you be judged on how much money you have accumulated or the suffering you have caused. What do you think? I’m guessing you are gonna have some explaining to do.

  18. Lorri says:

    let’s be real….people who make that kind of money don’t know how real people live, and rarely have pets….pets are messy, they don’t go with the mcmansions those people live in…

    wow, he’s taking a salary cut….he’s lucky to still have a job. Notice how the people below him won’t….and I am fairly sure they had little to nothing to do with the poor quality food.

  19. Nora and Rufus says:

    With their huge salaries and luxurious lifestyles, these guys will never know pain like the thousands or millions of innocent pets and their loving (or oblivious) pet parents suffered when they were poisoned in their own homes and died either suffering hideously and slowly or bled out internally while they screamed in pain looking with huge suffering and trusting eyes. If there is any real justice, we have yet to see it.

  20. kathy says:

    Oh yeah, lay off all those poor stiffs working for minimum wage (or do you get away with paying them less?). That’ll really help; the ones still there will just have to work harder, longer hours while you might give up one vacation a year.
    Try paying $8000 in vet bills on an income of $14,000/year.
    My heart bleeds Mr. Henderson, but not for you!!!!

  21. anonymous says:

    Menu Foods does not have problems because of the recall. They have problems because they delayed the recall, knowingly sold deadly poison, did not pay vet bills, harassed grieving pet parents, lied and made lame excuses.

    Almost a year now, since the dying and suffering for pets and pet parents started and no end in sight.

    Menu Foods really should quit making announcements like this pathetic crap and start making announcements about how many vet bills they are paying, how sorry they are for killing and sickening thousands of pets and they need to do it daily, for a long time.

    I do not know if Menu Foods can ever truly make amends for what they have done but they could try.

  22. Petsmart Profits Down From Weak Consumer Spending | Itchmo: News For Dogs & Cats says:

    […] Menu Foods is not the only one that is feeling financial troubles lately. On Wednesday, Petsmart cut its third-quarter and 2007 profit forecasts which caused its shares to go down by five percent. […]

  23. Sharon says:

    I think they should have suffered the same fate as the Chinese officials involved - execution. Why they are still on the company payroll is beyond me. I guess Canadian investors don’t have a conscience either.

  24. Sharon says:

    When I went to business school we took classes in ethics. Corporations and their executives have a fiduciary responsiblity to their shareholders, employees, customers, vendors, and community to do the right and honorable thing always. Nowadays this never happens. There is a corporate culture of exploitation and corruption and it is condoned and nurtured by the US government and Bush’s buddies, a bunch rich white men who have never actually worked for a living and wouldn’t know what ethics were if their life depended on it. Unfortunately our lives and the lives of our children and pets are dependent upon these rich white priveleged men who would sell their own mother for another dime.

  25. Donna says:

    The power of the consumer………………………..pet food companies ? Can YOU HEAR US NOW ! We as pet owners will shut you down.You made it plain.You sold poison food for profit and knew about. DID NOTHING,WHILE COUNLESS PETS SUFFERED AND DIED. Rewards for intentional murder for a dollar………………….. ? Bankrupt is nice and fines and jail time.It is what “your deception” has earned you. Greed and deception…………..your karma is earned.Wither and die…………..it what you send out so shall you receive. And you have earned the “mother of bad karma”.

  26. 5CatMom says:

    Menu Foods Recall Survivors

    http://www.youtube.com/watch?v=mU7J5ea6xz8

  27. 5CatMom says:

    Menu Foods Tragedy Memorial

    http://www.youtube.com/watch?v.....mp;search=

  28. shibadiva says:

    MF actually does have a published Code of Ethical Conduct on their website. The usual bilge that corporations get their worker bees to sign, saying that they won’t steal from the company.

    “The reputation of Menu Foods is one of our most valued assets. Menu’s reputation has been built over more than 33 years in business, through valued relationships with customers, employees, unitholders, lenders, suppliers, governments and regulatory bodies and the communities in which we do business.

    Every Menu Foods employee has a responsibility to ensure that Menu continues to be held in high regard by our various constituents. Everything that we do and every action that we take determines the way others see us. For the purpose of this policy, the term “employee” also includes directors, officers and contractors.” Yadda yadda.

    http://www.menufoods.com/ir/do.....onduct.pdf

  29. shibadiva says:

    Yup. Seppuku might be looking attractive to the unflushable Mr. Henderson at this point if he has to kiss his bonus goodbye.

    “The increase in the recall costs means Menu Foods must amend the agreements it has with its lenders, and, in a sign that the lenders are sticking with the company at least for now, it said it expects the amendments to be executed shortly.

    However, analyst Aleem Israel at Cormark Securities Inc. in Toronto, said the income trust’s lenders will likely be keeping their pencils well sharpened.

    That’s because the contract side of its business has almost entirely disappeared, leaving it only with its private-label brands - and sharply reducing its ability to generate profit, he said. “I’m guessing this business can probably do about $20-million in EBITDA, compared with $35-million to $40-million in the past.”

    http://www.theglobeandmail.com.....query=menu

  30. Don Earl says:

    New test results show Special Kitty, made by Menu Foods, tests positive for acetaminophen and melamine.

    The report is available here: http://www.pfpsa.org/news.html

    The samples were received by the lab in original, unopened pouches.

  31. 3FURS says:

    The day of believing the Vet’s mantra is GONE. We were all brain washed into believing that we could not home feed our pets. Well, now we’ve found that we can, and not only feed, but produce better health in our pets. Our children and grandchildren are seeing this. So future pets will nearly all be home fed. Commercial pet food will be bought only on occasion, and even then it will be cautiously chosen.

  32. 5CatMom says:

    “New test results show Special Kitty, made by Menu Foods, tests positive for acetaminophen and melamine.”

    Guess that explains why the New York State Lab found acetaminophen in Menu’s food early on - because it was there!

    http://www.agmkt.state.ny.us/A.....aseID=1598

  33. shibadiva says:

    And, unless MF is scrupulously testing for acetaminophen nowadays, it may continue to be part of their manufacturing process.

  34. MarySmith says:

    “Acetaminophen” - no wonder the pets became so sick and died!

    MF Income Fund - I hope your fate is the same - the sooner the better!


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