Interstate Bakeries to close Lakewood, Wash., bakery as part of Northwest consolidation

By Caroline Salls

Pittsburgh, Oct. 20 - Interstate Bakeries Corp. requested court approval to close its Lakewood, Wash., bakery as part of its efforts to consolidate its Northwest profit center, according to a Thursday filing with the U.S. Bankruptcy Court for the Western District of Missouri.

According to the motion, the bakery closing, as well as the closure of some thrift stores and depots in the region and the remapping of routes, will be completed by Dec. 17.

After the consolidation is complete, Interstate will not sell bread products in Washington or Oregon but will continue to sell cake products.

The company expects to incur $15 million in consolidation-related costs in the region, including $1.5 million in severance charges, $11.5 million in asset impairment charges and $2 million in other charges.

A hearing is scheduled for Nov. 9.

The Northwest consolidation is part of Interstate's nationwide restructuring efforts. Recently, the company announced the closing of its bakeries in Davenport, Iowa, San Francisco; New Bedford, Mass.; Miami, Fla.; and Charlotte, N.C., and the consolidation of routes, depots and thrift stores in its Florida, Northeast, California and Mid-Atlantic regions.

The Kansas City, Mo., bakery operator filed for Chapter 11 protection on Sept. 22, 2004. Its case number is 04-45814.

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