PHILADELPHIA (AP) -- The makers of Tastykakes say financial difficulties could force the company's sale or a merger after a new production facility failed to produce projected savings.
Tasty Baking Co. President Charles Pizzi says "unanticipated operational challenges" related to its new bakery in Philadelphia's Navy Yard has lowered projected savings for the fourth quarter of 2010 by $3 million.
Company officials say lenders have agreed to defer some payments related to the construction of its $78 million bakery and warehouse. Tasty Baking has also retained an outside financial advisor to examine options ranging from refinancing existing debt to selling the company.
The company also cited a bankruptcy filing by the owner of the A&P, Super Fresh and Pathmark grocery chains and rising commodity costs as contributing factors to the financial squeeze.
Tasty Baking Co. President Charles Pizzi says "unanticipated operational challenges" related to its new bakery in Philadelphia's Navy Yard has lowered projected savings for the fourth quarter of 2010 by $3 million.
Company officials say lenders have agreed to defer some payments related to the construction of its $78 million bakery and warehouse. Tasty Baking has also retained an outside financial advisor to examine options ranging from refinancing existing debt to selling the company.
The company also cited a bankruptcy filing by the owner of the A&P, Super Fresh and Pathmark grocery chains and rising commodity costs as contributing factors to the financial squeeze.