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Interstate Bakeries
built 305 days ago
Interstate Bakeries is one of the more fascinating success stories in an industry not known for surprising turnarounds. The core of the company's growth is a collection of once-moribund brands Interstate bought from Ralston Purina in 1995. Ralston had all but written off its ailing Continental Bakeries unit, which produced such well-known supermarket staples as Wonder Bread and Hostess snack foods. But through savvy marketing and modern production methods, Interstate has been able to revive the brands and wring out cost savings of $120 million from its Continental purchase in just two years -- a year ahead of schedule.
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Interstate Bakeries is one of the largest wholesale bakers and distributors of fresh baked bread and sweet goods in the United States. It employs about 25,000 people and the company and its affiliates operate 45 bakeries and approximately 630 distribution centers at various locations around the country.
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According to a statement from Alvarez, Interstate Bakeries "has some of the most recognizable and popular baked breads and sweet-goods brands in the nation. By filing for protection under Chapter 11 and obtaining DIP [debtor in possession] financing, the company should have the liquidity, time and resources necessary to thoroughly identify, assess and address the issues that will enable this company to be successful in the future."
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Interstate Bakeries Corp. filed revised reorganization plan in the U.S. Bankruptcy Court on January 28, 2008. As per it, unsecured creditors would recover 30 percent of their claims and shareholders would recover nothing. Secured creditors would recover fully through the issuance of new stock. The plan calls for specialist lender Silver Point Finance LLC to provide $400 million in post-bankruptcy funding. The plan values the company at $580 million. On the company’s exit from bankruptcy, it would issue $3.3 million shares of Class A stock to holders of secured claims, including $450 million owed to lenders.
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Interstate Bakeries Corp. reported net revenues of $689.8 million for the 12 weeks ended Aug. 25, 2007, up from $684.2 million during the same period in the previous year. IBC incurred an operating loss of $0.3 million for the quarter, compared with an operating loss of $7.8 million in the same period a year ago. The company noted that operating results in the first quarter of the current fiscal year included a non-cash asset impairment charge of $10.2 million associated with its decision to close bread operations in the Southern California market. IBC reported a net loss of $16.0 million for the quarter, compared with a net loss of $26.3 million during the same quarter a year ago.
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Interstate Bakeries is engaged in the distribution of bakery products in the US. The company's products include breads, rolls, snack cakes, donuts, sweet goods and related products. These products are sold under the brand names such as Wonder, Hostess, Baker's Inn, and Home Pride. It primarily operates in the US. The company is headquartered in Kansa City, Missouri and employs about 25000 people.
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Interstate Bakeries