Beatrice Bakery files for Chapter 11
July 7, 2011
by Eric Schroeder
BEATRICE, NEB. — Beatrice Bakery Co., maker of Grandma’s Fruit Cakes, filed for Chapter 11 bankruptcy protection on July 5 in the U.S. Bankruptcy Court for the District of Nebraska. Beatrice Bakery said it intends to have a plan of reorganization confirmed by the court within 90 days of filing. Greg Leech, president of Beatrice Bakery, said the company’s cash flow is strong and its debt to equity ratios are well within acceptable ranges, and the company was forced into the filing by a shareholder, who along with several other shareholders, had loaned the company money. When the company was not able to pay the loans as they became due, one shareholder filed suit, seeking to force the company to pay his loan. Mr. Leech said the company will continue to operate its business without any interruptions to its customers or suppliers, and does not expect to sell any assets to meet its obligations. In addition to Grandma’s Fruit Cakes, which date back to 1917, Beatrice Bakery makes liqueur cakes, artisan cakes, kosher cakes and breakfast bread.