date:Oct 17, 2012
Beleaguered US baker Hostess Brands has announced plans to close five bakeries and cut more staff as part of a restructuring initiative.
Hostess revealed its intentions in a 150-page profitability strategy document which was presented to the US Bankruptcy Court in New York last week.
Due to among other things, significant overcapacity in the baking industry, the debtors baking facilities currently operate at only 65% of baking capacity, said Hostess.
Additionally, as a result of the debtor