Failure is near, Tastykake accountants warn
Tastykake's accountants warn of "substantial doubt about the Company's ability to continue" as it runs low on cash
Shares of Tasty Baking Co., maker of Tastykakes, slipped to a 28-year low today after the Philadelphia snack bakery told the SEC in this filing late Friday that "the Company is unable to file" its 2010 annual report on schedule because it's busy trying to sell the firm.
In January the company said it had made deals with its banks, state agencies, landlord Liberty Property Trust, and other creditors to delay payments while it looks for a buyer to take over the company or some other "possible strategic and financial option."
That followed the failure of Tasty's new state-subsidized South Philadelphia bakery to meet initial sales targets; higher ingredient costs; and the bankruptcy of A&P, a major supermarket customer. The creditors gave Tasty until June 30.
The company said it still hopes to file its annual report within the next two weeks. But it warned it's likely to "include an explanatory paragraph from the Company’s independent registered public accounting firm expressing substantial doubt about the Company’s ability to continue as a going concern."
Mexican-owned Group Bimbo (whose US operations are based in Montgomery County) and Georgia-based Flowers Foods (which has been in Tastykake merger talks before) are among the possible buyers, as I wrote in January.
Joseph N. DiStefano | Columnist
Joseph N. DiStefano | Columnist
Joseph N. DiStefano | Columnist
Joseph N. DiStefano | Columnist
Joseph N. DiStefano | Columnist
Joseph N. DiStefano | Columnist
Joseph N. DiStefano | Columnist
Dear Abby, Inquirer wire services
Faiyaad Kamal
Lexie Linderman
Mia Messina
























