Baker Interstate Bakeries Corporation has announced plans to close its bakery in Davenport, Iowa, as part of its restructuring.
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The company expects the closure to be completed by 4 November 2005, subject to bankruptcy court approval. It is expected to affect approximately 150 workers.
“We appreciate the hard work of all our employees in the North Central region. While it’s painful to close any facility, this move will help preserve the long-term health of Interstate Bakeries,” said Tony Alvarez II, chief executive of IBC and co-founder and co-chief executive of Alvarez & Marsal, the corporate advisory and turnaround management services firm.
Production capacity at the Wonder bakery at 1034 E. River Drive in Davenport will be transferred to other bakeries in the region. Distribution of IBC’s branded products to food stores in the North Central region will be largely unaffected by the closure.
Interstate Bakeries Corporation filed for bankruptcy protection on September 22, 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.
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By GlobalDataThe company continues to operate its business in the ordinary course as a debtor-in-possession.
