I.B.C. suffers $12.2 million loss in period

by Eric Schroeder
Share This:

KANSAS CITY — A month after posting a profit of $4,753,907, Interstate Bakeries Corp. again returned to the red, sustaining a loss of $12,256,022 in the four weeks ended June 28, according to an 8-K filed Aug. 13 with the Securities and Exchange Commission.

Sales in the four weeks ended June 28 were $222,181,206, down from $222,831,209 in the four-week period ended May 31.

Operating expenses finished at $109,020,411, up 11% from $97,799,039 in the previous period. Ingredients, packaging and outside purchasing costs were $68,726,191, down from $70,531,136, while direct and indirect labor costs fell to $36,104,507, up 7% from $33,637,436 in the previous period.

I.B.C. recorded charges of $132,439 from restructuring and reorganization for the four-week period ended June 28. Charges included professional fees of $1,565,747, interest expense of $2,927, "other" restructuring expenses of $113,077 and "other" reorganization expenses of $5,000. Helping offset the loss was a gain on the sale of assets of $1,554,312.

As of June 28, I.B.C. had borrowed $71.4 million under its $243.5 million debtor-in-possession credit facility. The company said it has $131.1 million of letters of credit outstanding. The amount of the credit facility available for borrowing was $41 million as of June 28.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.

The views expressed in the comments section of Food Business News do not reflect those of Food Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.