US: Interstate appoints new CEO, reports losses
The bankrupt maker of Twinkies and Wonder bread, Interstate Bakeries, yesterday (30 January) appointed Craig D. Jung as chief executive officer subject to approval from the US Bankruptcy Court.
At a hearing scheduled for 16 February, the court will be asked to approve Jung's appointment as CEO and to the company's board of directors. It will also be asked to extend the maturity of its debtor-in-possession financing facility to February 2008.
If the appointment is approved, Jung will replace interim CEO Tony Alvarez, who has served as CEO since the company filed for Chapter 11 protection in September 2004.
Jung has previously served as CEO of Panamerican Beverages, formerly the world's third-largest Coca-Cola bottler, having spent 11 years at PepsiCo and served as founding chief operating officer of Pepsi Bottling Group.
Interstate said that Jung's proposed three-year contract included an annual base salary of US$900,000, a $1.2m signing bonus and performance-related bonuses.
News of Jung's appointment came the same day that Interstate reported December's monthly loss was up 80% on lower sales and slightly lower costs. For the four weeks ended 16 December, Interstate said it lost $12.9m on revenues of $213.1m, up from a loss on $7.15m in November on sales of $222.3m. In the comparable period last year, Interstate posted a loss of $9.7m on revenue of $223.8m.
Costs and operating expenses during the month decreased 1.7% from November to $213.8 million, the Kansas-based food manufacturer revealed.
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