Bankruptcy

Bankruptcy and the Bread Aisle

By Meaghan Olson

Even families that are particularly struggling in the current economy are still buying bread. It’s the most basic kitchen staple.

And how much you pay for that bread is being impacted by the rest of economic happenings. A major bread market player decided to file bankruptcy recently in order to reorganize and offer their loaves at lower prices. According to a story over at CNNMoney:

The added competition, pressures of weaker consumer spending and the ever- constant threat of private-label rivals have also pinched other manufacturers, some of which have responded with promotions and price reductions.

The latest battle was kicked off when Interstate Bakeries Corp. emerged form bankruptcy in February. Interstate are the makers (bakers?) of longtime brand Wonder Bread. During bankruptcy they lost market share, analysts said, and are now trying to recapture it by lowering prices.

The move forced other major bread companies like Sara Lee and Pepperidge Farm to experiment with lower prices.

While the competition puts pressures on the businesses to perform, it could mean good news for anyone who buys bread - which is pretty much everyone.

Full post as published by The Bankruptcy Blog on August 25, 2009 (boomark / email).