Commercial bakeries are some of the most beloved manufacturers of products. Whenever popular baking companies have financial problems that can lead to bankruptcies and possible shutdowns, consumers face the risk of losing some of their favorite products.
One of the most prominent brands to disappear from store shelves and disappoint its millions of fans was Hostess Brands after it filed for Chapter 11 bankruptcy in January 2012, ceased operations, and liquidated.
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When the news of the closing of Hostess reached consumers, many people, including this writer, stocked up on boxes of the baker’s products, not knowing if it would ever return to business.
Related: Popular restaurant chain plans to file Chapter 11 bankruptcy
Hostess, which manufactured Wonder Bread, Twinkies, Ho Hos, and Ding Dongs, eventually sold all of its products and disappeared from stores for many months until J.M. Smucker in September 2012 agreed to purchase the defunct company for about $5.6 billion.
Today, store shelves are well-stocked with Hostess products to the delight of thankful consumers.
Another food producer files for bankruptcy
More recently, Hearthside Food Solutions, a major manufacturer of various snack and food products for distributors such as Mondelez Global, Kraft Heinz Foods, and Pepsico, on Nov. 22, 2024, filed for Chapter 11 bankruptcy protection with a restructuring support agreement to hand 100% ownership of the company to its first-lien lenders.
Hearthside faced $2.1 billion in impending maturities of its first-lien revolver and first-lien term loan in November 2024 and May 2025, respectively. The debtor owed $2.75 billion in funded debt obligations, $304.8 billion in lease obligations, and about $164 million in general unsecured debt.
The debtor cited operational challenges for its filing, including wage increases and inflation, industry headwinds, certain labor issues and transitions, and adverse publicity likely from the U.S. Department of Labor’s investigation into alleged child labor law violations in 2023.
Founded in 2009, Hearthside operated 28 manufacturing facilities in 11 states that produce consumer packaged foods, such as nutrition bars, baked goods, frozen and refrigerated foods, snacks, and sauces. The company employs 12,100 workers.
The company had not exited bankruptcy at last check.
Frisco Baking Company
Frisco Baking Company files Chapter 11 bankruptcy
And now iconic Los Angeles sourdough bakery Frisco Baking Company filed for Chapter 11 bankruptcy to reorganize its business and continue as a going concern.
Related: Another popular restaurant chain files for Chapter 11 bankruptcy
The company, which has operated since 1941, filed its petition on Feb. 25 in the U.S. Bankruptcy Court for the Central District of California in Los Angeles listing $1 million to $10 million in assets and $10 million to $50 million in liabilities.
More bankruptcy:
- Popular breakfast dining chain files for Chapter 11 bankruptcy
- Huge national car wash chain files Chapter 11 bankruptcy
- Troubled trucking company files for Chapter 11 bankruptcy
The debtor’s largest unsecured creditors include the Bakery and Confectionery Union and Industry International Pension Fund, owed a disputed claim of about $7 million; the Internal Revenue Service, owed $970,000; and trade creditors Capitol Food Co., owed over $380,000; and Maisano’s Wholesale Bakery, owed over $329,000.
Frisco Baking indicated that funds will be available for distribution to unsecured creditors. The debtor did not specify a reason for filing bankruptcy in its petition.
The family-owned baking company has occupied the same Los Angeles location for over half a century. In 1954, part-owners of Oakland, Calif.’s, Colombo Bakery purchased Frisco and provided their all-natural sourdough products throughout Southern California.
Today, Frisco Baking’s bread is served in some of the finest restaurants and delis throughout Southern California. Aside from its wholesale business, the bakery operates a retail store Wednesday through Sunday. The company bakes its bread 5 a.m. to 2 p.m. daily, according to its website.
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