IBC: links larger loss to plant closures

Kansas City / MO. (ibc) Interstate Bakeries Corporation (IBC) has reported a much larger monthly loss, driven by costs tied to the planned closure of four bakeries in Southern California. In a court filing this week, the company said it lost 18,1 million USD on sales of 217 million USD during the four-week period ending October 20. During the previous month, the company lost 7,7 million USD on sales of 220,8 million USD. The sales total is the third- lowest since the company filed for bankruptcy in September 2004. Costs of goods sold and other operating expenses during the period decreased 3,3 percent from the previous month to 216,1 million USD. IBC said in August it would exit the bread market in Southern California, closing four plants and laying off about 1.300 people by the end of October. The company said it recorded severance and other costs of more than seven million USD.