Wonder Bread Maker Files for Bankruptcy
Kansas City – Interstate Bakeries has filed for Chapter 11 bankruptcy protection.
Interstate, based in Kansas City, is best known for its Wonder bread and Hostess snack products.
The company says low-carbohydrate dieters and high operating costs cut into its bottom line and made the filing unavoidable.
The nation's largest wholesaler baker also says chairman James Elsesser has resigned and been replaced with Tony Alvarez, who runs a firm that works with struggling companies.
Alvarez told employees today he's optimistic Interstate can be turned around. He said layoffs are possible, but he won't know how many until he has finishes studying the IBC operation.
Interstate employs 32,000 people across the country.