Kansas City, Mo.-based Interstate plans to close all four of its Southern California bakeries, 17 distribution centers and 16 outlet stores, eliminating 1,300 jobs.
Interstate, heading toward a third year in Chapter 11 bankruptcy, said the Southern California bread making operations are unprofitable due to high labor costs. The closing will cost the company about $29 million and the last bread deliveries will be on Oct. 20.
The firm will continue to operate two area bakeries producing the Hostess and Dolly Madison lines of snack cakes and doughnuts, which include Twinkies, Ding Dongs and Snowballs. Those plants employ around 840 workers.
The airy and sweet Wonder bread, first produced more than 80 years ago, has been sold in Southern California since at least the 1940s. Interstate purchased the brand when it acquired Continental Baking Co. from Ralston Purina Co. in 1995 for $461 million.
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The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now