USA: Interstate Bakeries announces bakery closure, consolidation moves
US wholesale baker and distributor Interstate Bakeries Corporation has announced that it plans to consolidate operations in its Mid-Atlantic Profit Center (PC) by closing its bakery in Charlotte, North Carolina, and consolidating routes, depots and thrift stores in North Carolina, South Carolina and Virginia.
The move is part of its previously announced efforts to address its continued revenue declines and high-cost structure, it plans to consolidate operations," it said. It expects to complete the consolidation 23 July 2005, subject to bankruptcy court approval.
The consolidation is expected to affect approximately 950 workers.
"Closing a bakery and consolidating routes, depots and thrift stores are
not decisions we take lightly," said Tony Alvarez II, chief executive of IBC and
co-founder and co-chief executive of Alvarez & Marsal, the global corporate
advisory and turnaround management services firm. "We are sensitive of the impact this will have on all of our employees in the Mid-Atlantic region, but we must make the difficult decisions necessary to revitalize the company and ensure a
successful future for IBC."
Interstate Bakeries Corporation filed for bankruptcy protection on 22 September 2004, citing liquidity issues resulting from declining sales, a high fixed-cost structure, excess industry capacity, rising employee healthcare and pension costs and higher costs for ingredients and energy. The company continues to operate its business in the ordinary course as a debtor-in-possession.
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