The Teamsters union said it negotiated a deal between investor Ripplewood Holdings and Interstate Bakeries Corp.’s creditors to save the company from liquidation and protect union jobs.
Under the proposed settlement between the banks, Ripplewood and the Teamsters, IBC will be able to emerge as a standalone company after four years in bankruptcy, the union said in a statement.
The union represents about 9,500 of IBC’s 25,000 employees.
“After what looked like a drop off in negotiations, I’m pleased to announce that we were able to broker a settlement very late last night,” said Richard Volpe, director of the Teamsters’ bakery workers conference.
“This settlement was not without sacrifices from all parties involved, but it will place the company on the best footing possible for its future success,” Volpe said. “Our priority from the beginning was to help IBC find a plan that would preserve the best chance for the company’s long-term viability.”
IBC is best known for its brands Wonder Bread and Hostess. Details of the plan will be forthcoming in the next several weeks, the Teamsters said.
