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Published on 2/10/2006 in the Prospect News Distressed Debt Daily.

Interstate Bakeries requests court OK to consolidate Upper Midwest profit center

By Caroline Salls

Pittsburgh, Feb. 10 - Interstate Bakeries Corp. requested court approval to consolidate sales and retail operations in its Upper Midwest profit center by standardizing distribution and consolidating delivery routes and bakery outlets, according to a Thursday filing with the U.S. Bankruptcy Court for the Western District of Missouri.

Following these consolidations, Interstate will have completed the restructuring of all 10 of its profit centers. The company expects to complete the last of its consolidations in the first quarter of this year.

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

A hearing on consolidation of the Upper Midwest profit center is scheduled for March 1.

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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