Interstate Bakeries Corp.’s stand-off with trade union officials over the restructuring of the company could be nearing an end after a mystery financial investor expressed interest in buying a stake in the US baker.
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IBC’s management, led by CEO Craig Jung, is looking to take the company out of Chapter 11 proceedings and has drawn up a plan to revitalise the business.
The Teamsters union, however, has been highly critical of the Jung-backed strategy, and had backed a rival consortium that had indicated interest in buying IBC. The consortium, which included investment fund Yucaipa, did not table a formal bid for the business.
However, IBC has attracted interest from an unnamed financial investor, which has approached the company with a proposal to buy a stake in the business.
The investor has also outlined proposals for the business to assuage union concerns over the future of the company should it become a stakeholder, IBC said. The Twinkies bread maker is in the process of reviewing the agreement between Teamsters and the investor.
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By GlobalDataOfficials at the Teamsters union could not be reached for immediate comment.
Meanwhile, Jung said IBC has got the ball rolling on plans to sell off part or all of the company – in case the management’s recovery plan fails.
“Under the circumstances, the only prudent course of action for the company is to embark on a dual-path and explore alternatives that include the sale of the company in multiple transactions,” Jung said.
“As part of this process, we will immediately begin holding discussions with potential strategic purchasers, many of whom have already expressed interest in buying certain of the company’s businesses and assets.”
