The company will close its plants in Amarillo, Texas; Garden City, Kansas; and Waterloo, Iowa on 25 May, resulting in a loss of more than 650 jobs; however, its plant in South Sioux City, Nebraska will continue to run at reduced capacity.
Beef Products spokesman Rich Jochum said the company officials had hoped to recover but have since realised that doing so was not possible in the immediate future.
"We will continue communicating the benefits of BPI's lean beef, but that process is much more difficult than (countering) the campaign to spread misinformation that brought us to this point," Jochum added.
In March, a mass outrage erupted after a social media campaign was initiated against the use of ammonia-treated beef product, which is used as a filler for ground beef.
The product is made from leftover cuts of meat that are heated and spun in a centrifuge to separate the meat from the fat, and then treated with ammonium hydroxide to kill bacteria.
Although federal regulators noted that the ammonia-treated filler meets food safety standards, critics said that the food is unappetising and possibly poses safety risk due to treatment with ammonia, which led to loss of consumer confidence and drop in sales.
Following this, Beef Products had halted production at three plants for 60 days, and warned that the closure could become a permanent suspension.
