Twinkies Maker Files for Bankruptcy, Names New CEO
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Interstate Bakeries Corp. (IBC), the nation’s largest wholesaler baker whose products include Twinkies (search) and Wonder Bread (search), filed for Chapter 11 bankruptcy protection early Wednesday. The company also named a new chief executive. The electronic filing, made shortly after midnight with the U.S. Bankruptcy Court for the Western District of Missouri in Kansas City, listed assets of $1.626 billion and liabilities of $1.321 billion. The company said it had a commitment, subject to bankruptcy court approval, from JP Morgan Chase Bank to provide $200 million to pay suppliers, employees and other operating costs during the reorganization. It said it would continue operating its bakeries, outlet stores and distribution centers. James R. Elsesser, who had been chairman and chief executive officer, resigned both positions effective Wednesday, and the board named Tony Alvarez (search) as CEO, with John Suckow to be chief restructuring officer. Both are with Alvarez & Marsal, a turnaround management firm founded and headed by Alvarez. Leo Benatar, a member of the board, was elected to be the non-executive chairman. |