Archway: Avalanche of costs led to closing (cookie company)

[Omaha Steve]

http://www.mansfieldnewsjournal.com/article/20081129/NEWS01/81128028

By Linda Martz • News Journal • November 29, 2008

ASHLAND — Archway Cookies said climbing costs and business failures led to shuttering its doors in papers filed last month with a Delaware bankruptcy judge.

Parmalat Finaziara, an Italian company, owned Archway and Mother’s Cake and Cookies until 2005, after it filed for insolvency, then sold both companies to Catterton Partners.

Business took a downtown recently, Archway officials said, due to record fuel costs to transport items, a rise in the cost of commodities like flour, sugar and butter, and increased labor costs.

Officials also told the court the company operated in an extremely competitive industry where it was unable to implement effective price increases.

Archway officials also raised the issue of accounting irregularities. During the summer of 2008, the company and its lenders discussed selling some assets to a third party. Alvarez and Marsal North America LLC was hired to assist with restructuring and the sale.

Bankruptcy filings said the company’s operating management firm, Insight Holdings, received whistle-blower letters from employees in May and July 2008. Those letters, which Catteron apparently was not aware of, were turned over to Alvarez in early September, court filings said.

FULL story at link.

[BrklynLiberal]

1. Sad. i used to buy Archway cookies. Their oatmeal cookies were the best.

[benld74]

2. Archway in Saint Louis,,,

Man it was the greatest driving by and smelling the fresh baked goodies!!! Then they got bught out and Buh-BYE thanks for the memories

[gollygee]

3. Good

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=104x4053325

And yes, that thread is about Archway cookies:

http://www.ellisonbakery.com/1-about/history1.html (Edited to add that this link no longer seems to work - maybe since they've closed? But I copied and pasted this during the earlier issue.)

Down the page under "Archway Cookies"

Archway Cookies

In 1949, Ellison Bakery began producing Swanson Homemade Cookies, which are now known as "Archway Cookies". Donald Ellis became one of the earliest pioneers of Archway, producing a high-quality product made from only the finest ingredients.

His vision, energy, and business acumen helped Ellison Bakery become the exclusive producer of Archway cookies for Indiana, Kentucky, and later Wisconsin. Ellison Bakery held this license until 1997. At that time, Ellison renegotiated its agreement with Archway so that now the Bakery supplies certain varieties of Archway Cookies throughout the United States.

[OhioBlue]

6. Archway might have subcontracted some cookies with that

bakery - but Ellison is not Archway. Archway had HQ in I think Battle Creek MI and a plant in Ashland, Ohio. It is absolutely devastating what has happened to the workers. The company didn't even give them notice - they also cancelled their health benefits retroactively, so some medical services that they thought were covered, they are now getting the bills for. The investment company that bought Archway has brought a lot of a great deal of hardships to many families.

[Donnachaidh]

4. where am I going to get my raspberry-filled comfort goodies from?

Damn it! They were about the only company (next to Pepperidge Farms) that I would buy cookies from. I need a waaahmbulance!

[Sherman A1]

5. A real shame to see them leave the market

I can remember driving by the Mrs. Allison's plant on Page Ave in St. Louis and smelling the cookies being baked there many a day. It was also sad to know good folks that lost their jobs, when this happened. I know I had a real good sales rep from Archway/Allison's at the store where I work. He was a hard working decent guy with two little girls to support and always gave me the stales to give to Operation Food Search (one day dropping off a whole pallet of cookies that we split between the two agencies that pick up from our store).

[OhioChick]

7. Sad to hear.

K&R

[TankLV]

8. GREAT NEWS! Good riddance to bad rubbish - they can take their bigotry with them...!

Couln't happen to a more deserving crappy bigoted company...

Hope they all lose EVERYTHING...

fucking anti-gay assholes - all of 'em...

[OhioBlue]

9. It is not great news

it was heart breaking for the people that worked at Archway. I think you are thinking of Ellison. Ellison is not Archway.

One woman who was pregnant had her labor induced early (they found out on Friday that the plant was shutting down - no notice) she had her labor induced that weekend b/c they told her the benefits would be canceled on Monday. She found out afterward that they had already canceled. She has over 20k in medical bills, lost her job and cannot collect unemployment.

[LisaL]

12. She should be able to get Cobra, should she not?

Why can't she collect unemployement.

[Catshrink]

13. Who can afford Cobra?

[OhioBlue]

14. She cannot collect unemployment

b/c she was technically not able to work as she just had a child.

She can't afford COBRA with no $$. It would probably be around $1k per month.

Here is a link to the original story in the local paper: http://www.times-gazette.com/news/article/4444408

[trayfoot]

10. Little Debbies is NOT doing that well, either!

My SIL works at one of their plants, and the outlook is bleak!

[Catshrink]

11. What's left in the market?

Nabisco
Store brands
Keebler
Pepperidge Farm
Homemade

[Omaha Steve]

15. Hostess -Wonder bread is in trouble too

Twinkies, ding dongs, cup cakes, etc... The Teamsters may be buying part of the company to save it.

[Catshrink]

16. Snoballs? No more snoballs?

OMG! Save Hostess!

And for more on the uses for Twinkies, check this out:

http://www.twinkiesproject.com/

[AzDar]

17. Oh Dear Jeebus, THAT explains it...

Last week, while sick with flu, I had Hubby march around several grocery stores looking for Archway Christmas Snowball Cookies, because they were the only food item in the world that sounded good to me. I was rather evil about it; he would call me on his cell quite exasperated, and say, " You aren't going to believe this, but Safeway doesn't have them, either..."
I made the poor dude suffer along with me for his inability to secure those cookies.

I'm thinking I might leave this little news item out of our dinner conversation tonight.

:rofl:

[peekaloo]

18. *pout* No more Windmill Cookies

:cry: