US wholesale baker and distributor Interstate Bakeries Corporation has announced plans to consolidate operations in its Florida profit centre by closing its bakery in Miami and consolidating routes, depots and thrift stores in Florida and Georgia.
The move is part of its previously announced operational and financial restructuring and subject to bankruptcy court approval. It is expected to affect approximately 600 workers.
IBC will continue to service the market from its bakeries in Columbus, Georgia, and Jacksonville and Orlando, Florida.
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.
“In light of continuing revenue challenges, we are taking steps to rationalize and refocus our under-performing operations into a sustainable, ongoing business that can operate outside of bankruptcy protection,” 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.
“These actions are intended to improve profitability by rationalizing marginal products,” he said. “The company will strengthen its focus on branded sales and deliveries, which we believe are key components in configuring the business for efficiencies in production, distribution, marketing and sales.”