US wholesale baker and distributor Interstate Bakeries Corporation has announced a plan to close consolidate operations in its Northeast Profit Center (PC) by closing its bakery in New Bedford, Massachusetts, and consolidating production, routes, depots and thrift stores throughout the Northeast where it maintains regional facilities.
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The company said it expected to complete the consolidation of the Northeast PC by mid-August, subject to bankruptcy court approval. The consolidation is expected to affect approximately 1400 workers.
“Today’s decision is not a reflection on the hard work and efforts of our employees, but is based on what is best for the overall health of the company,” 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.
“Our end goal is to greatly reduce the operating weaknesses and redundancies that continue to hurt our business — to save our company and as many jobs as possible.”
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 GlobalData
