Posted on 10/09/2008 7:03:23 PM PDT by ConservativeMind
The maker of Archway and Salerno cookies said the company, crumbling under rising prices for raw ingredients, has halted operations and filed for bankruptcy.
The Michigan-based company maintains a distribution center in Mokena's Corporate Corridors business park. Information wasn't available Wednesday about how many employees were affected by the company's shutdown.
In its bankruptcy filing, Archway & Mother's Cookie Co. listed assets in excess of $50 million and liabilities of more than $500 million. The company said it had hired Jeffrey Granger as chief restructuring officer, but it wasn't clear whether Archway's brands or manufacturing operations would be sold.
"Like many other companies, Mother's Cake & Cookie Co. and Archway Cookies LLC have not been immune to the challenging economic environment, and have been operating at a loss due largely to the significant increases in raw material costs and the record high fuel costs across the country," Granger said Monday.
After reviewing all its options, Chapter 11 "was the only course of action" for the company, he said.
Founded in 1936 in Battle Creek, Mich., Archway had previously been owned by Deerfield-based Specialty Foods Corp. According to a company profile, variations of Archway's famous oatmeal cookie had accounted for 40 percent of overall sales.
People need to get up off their ass,go to the kitchen and bake their own cookies.It’s easy and a whole lot cheaper too.
I presume much of the problem is the huge increase in ag prices from making subsidized ethanol instead of things to eat. The prices for grains are up as are the prices for grain derived products like corn based sweeteners. The food market must not have born them increasing their prices enough to compensate. Not to mention US manufacturers can’t switch from suddenly expensive corn based sweeteners to sugar because of the artificially high price of sugar government maintains to prop up the uncompetitive sugar cane farmers in the southern US. Also note I write this an anti-ethanol Iowan!
Our families were the ones who built up the bay area. Now it's a wreck. Sad times....
Archway fruit-filled are the best!
Oh, and in December, the Pfeferneuse!
What exactly do we still make here in the good ol’ USA?
Bankruptcies.
“YOU! You buy our China cookie or DIE!”
That's the way the cookie company crumbles.
Achway and Salerno cookies are back at most Roundy stores for the Holiday season anyway.
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