Oct. 5 (Bloomberg) -- Topps Meat Co. said it's going out of business effective today because of losses caused by the second-biggest beef recall in U.S. history.

``In one week we have gone from the largest U.S. manufacturer of frozen hamburgers to a company that cannot overcome the economic reality of a recall this large,'' Anthony d'Urso, chief operating officer of Elizabeth, New Jersey-based Topps, said today in a statement.

The recalled products -- more than 21.7 million pounds of ground beef -- have sickened at least 30 people in eight states, according to the U.S. Centers for Disease Control and Prevention. The Department of Agriculture said yesterday it will take steps to improve its recall process because of delays between illness reports and its recall announcement.

Most of the 87 employees at the company's plant in Elizabeth have not worked since it was closed after the USDA's initial recall announcement on Sept. 25, spokeswoman Michele Williams said in an interview. About 10 are being kept on indefinitely while the USDA investigation continues. Williams did not disclose the size of the company's financial losses.

Public-Health `Repercussions'

The company's collapse ``is a stark reminder that these recalls have an economic implication for business and workers, in addition to the profound public health repercussions,'' said U.S. Representative Rosa DeLauro, chairwoman of the House Appropriations subcommittee that funds food safety, in an e- mailed statement.

``We must act immediately to strengthen and improve our food-safety system,'' the Connecticut Democrat said.

Topps's demise shows a need for companies to follow beef industry safety practices, said James Reagan, research vice president for the National Cattlemen's Beef Association, the largest U.S. rancher group. ``The consequences of not following these commonly accepted interventions are clear,'' he said.

Closely held Topps Meat was founded in 1940. A wholly owned and separately managed subsidiary, J&B Meats of Moline, Illinois, is not affected by the Topps closure, Williams said.

In 1997, Hudson Foods Co. recalled 25 million pounds of ground beef produced at its processing plant in Columbus, Nebraska, the largest recall ever. For all food products, the recall is the fifth-biggest, according to the USDA.

To contact the reporter on this story: Alan Bjerga in Washington at abjerga@bloomberg.net.

Last Updated: October 5, 2007 16:50 EDT