Packaged bakery foods company Flowers Foods has entered a contract to acquire Royal Cake Company a Winston-Salem based bakery currently operating in Chapter 11 bankruptcy. The contract is subject to approval by the bankruptcy court, it said.
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Royal Cake, with 2004 sales of $24m, filed for bankruptcy in February in the United States Bankruptcy Court for the Middle District of North Carolina, Winston-Salem Division. The company employs approximately 190 people and produces cookies, cereal bars and creme-filled cakes that are sold under the Royal, Bakers Best, and private label brands.
“Due to increased demand for our snack cake products, we need additional production capacity and Royal is a fine bakery,” said George E. Deese, Flowers Foods’ president and chief executive officer. “If our contract is approved by the bankruptcy court, Royal will be a welcome addition to our snack cake operation.”
