Interstate Bakeries sees loss after closing plants

KANSAS CITY, Mo. – Interstate Bakeries Corp. on Wednesday reported its largest one-month loss since it filed for bankruptcy in September, citing costs from its decision to close bakeries and make other cuts on the East Coast.

The Kansas City-based maker of such staples as Wonder Bread and Hostess Twinkies said it lost $24.1 million during the four weeks ending April 30. The prior low point was $14.5 million in December.

The company’s holdings include the J.J. Nissen plant in Biddeford. Interstate Bakeries announced last week it was cutting 173 jobs at the plant.

Interstate Bakeries announced in April and early May that it would consolidate operations in its Northeast, Mid-Atlantic and Florida “profit centers.” The moves, which must be approved by the U.S. Bankruptcy Court, would involve closing three bakeries and trimming routes, distribution centers and thrift stores. About 3,000 jobs would be eliminated.

Last week, the company turned its attention to the West coast, saying it plans to close two bakeries in San Francisco and lay off 650 workers. Costs related to those cuts were not included in the latest report.

The Bankruptcy Court has required monthly reports from Interstate Bakeries since the company filed for Chapter 11 protection in September, blaming low sales and fixed operational costs.