Tuesday, August 28, 2007
Interstate Bakeries Corporation is quitting the Southern California bread market and laying off 1,300 workers. The maker of Wonder Bread and Hostess Twinkies says it will close four bakeries including one in San Diego. KPBS reporter Ed Joyce has more.
Interstate Bakeries says they can't make money selling bread in Southern California. About 100 workers will lose their jobs when the San Diego bakery is closed at the end of October, one of four the company is closing in the region. The company is also closing three of its San Diego outlet stores.
Jason Booth with Interstate Bakeries says operations here are unprofitable because of lower-cost competition and labor costs.
Booth : The biggest factor in Southern California which is causing today's action are sort of the structural issues. The union issues, transportation, production costs and things like that.
The Kansas City-based company filed for bankruptcy protection three years ago. While Wonder Bread will disappear from store shelves, the company will continue providing Hostess Twinkies, cakes and donuts in Southern California.
Ed Joyce, KPBS News.