Interstate Bakeries Corporation has said it has increased its reserve for workers' compensation during fiscal 2004 and will take a charge to pre-tax income of approximately US$40m.

The company said it is currently reviewing whether all or a part of the charge relates to the fourth quarter or prior quarters in fiscal 2004. If Interstate Bakeries determines that all or a portion of the charge should have been taken in a quarter prior to the fourth quarter, it may be required to restate its financial statements.

The Kansas City, Missouri-based company makes and distributes fresh baked bread and sweet goods under various national brand names including Wonder, Hostess and Home Pride, as well as regional brand names such as Butternut, Dolly Madison, Drake's and Merita.