IBC: sells properties in North Carolina and Massachusetts

Kansas City / MO. (beu) A bankrupcty judge approved the sale by Interstate Bakeries Corporation (IBC) of two properties that would net a total of about 2.95 million USD. The properties are in Charlotte (NC) and Worcester (MA). The sales went through Chapter 11 auctions earlier this month. Six Academy LLC will buy the Worcester property for 850.000 USD – a 46,800-square-foot building on 1,55 acres. According to court papers, Interstate Bakeries received no other bids for the property, which it purchased with plans to open one of its thrift stores, but it never did. DS Carolina LLC beat out a stalking-horse bidder, the Matlock Family Trust, to purchase the property in Charlotte for 2,1 million USD. The Matlock trust opened bidding for the 189.780-square-foot building on 18,62 acres with a two million USD offer at the auction. Companies operating under bankruptcy protection must sell assets through an auction to ensure creditors receive the highest payoff for their debt. Interstate Bakeries, which makes Hostess Twinkies and Wonder Bread, sought bankruptcy protection September 22, 2004, citing liquidity problems caused by higher employee health care and pension costs, and excess industry capacity. The Kansas City company, the largest wholesale maker and distributor of baked goods in the United States, has embarked on a massive cost-cutting campaign that included the closure of seven bakeries and about 200 distribution centers.