Interstate Bakeries Corp. (IBC), Kansas City, Mo., is closing its Buffalo, N.Y., bakery on October 23. The closing affects 200 employees, which are represented by three unions.
The bakery primarily produces breads and rolls sold under the Wonder, Home Pride and Beefsteak brand names. The plant also manufactures Hostess donuts. The plant's production will be transferred to IBC bakeries in Akron, Ohio; Biddeford, Maine; Jamaica, N.Y.; and Philadelphia.
According to James Elsesser, IBC's chief executive officer, the Buffalo bakery, which was built in 1923, was not as efficient as some of the company's other facilities. The Buffalo plant closing comes on the heels of the company's earlier announcement that it was closing its bread bakery in Monroe, La., for similar reasons. The Monroe facility closed September 17, and production was shifted to the company's Alexandria, La. plant.
IBC estimated that it will take a $7.7 million to $9.6 million restructuring charge related to the two closings.