MILWAUKEE, WI (WTAQ) - A suburban Milwaukee company has filed for Chapter-11 bankruptcy after it was sued for making contaminated alcohol wipes, and was later shut down by the FDA.
The Triad Group of Hartland and its H & P subsidiary are both seeking protection from creditors, as they try to stay in business while negotiating some of their debts away.
The firms listed combined assets of $11 million, and liabilities of $37 million – most of which appear to be potential penalties in the lawsuits the companies face.
Triad’s problems came to light in late 2010. That’s when the family of a two-year-old Houston boy filed suit, after Triad’s wipes were found to have bacteria that killed the toddler.
In April of last year, U.S. Marshals seized about $6 million worth of products, thus effectively shutting down the Hartland operation.
At least 10 lawsuits have been filed accusing Triad and H & P of making people sick – and causing at least four deaths. Triad has denied any connection – and it said last year it was moving toward re-opening. But the firm put its plant up for sale earlier this year.