Hostess Brands: to close Decatur bakery

Irving / TX. (bw) Hostess Brands Inc. said that it will be closing its single line bakery in Decatur (IL) due to current market conditions and necessary operations efficiencies. The bakery, which makes Butternut and Wonder varieties of hot dog and hamburger buns, will cease production in this October. Changes in local market conditions and the recent loss of a significant co-packing contract were the key factors which lead to the decision to close the Decatur bakery which employs 65 people. Hostess Brands will continue to serve area customers without interruption sourcing bread products from other bakeries in the central Illinois region. Customer delivery routes are staffed by 15 sales and delivery personnel. Those jobs will not be affected. In addition, the Butternut Retail Outlet store in Decatur will continue to operate. The bakery has been operating since 1920. The 43’000 square feet plant was built as Conklin Bakery. It was sold to Purity Baking Company of Decatur in 1946, which produced Sunbeam products. In May 1986, Purity Baking sold to Interstate Brands (IBC). In 1995, IBC merged with Continental Baking Company and was forced by the FTC to divest the Sunbeam brand. Since 1995, the bakery has produced for the Butternut and Wonder label and contract customers.

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