Monday, May 25, 2015

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

Failure is near, Tastykake accountants warn

Tasty Baking, the Philadelphia-based maker of Tastykakes, is in financial trouble.
Tasty Baking, the Philadelphia-based maker of Tastykakes, is in financial trouble.

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."

More coverage
eBay buys GSI; $40M in cost cuts; Rubin to keep part
Layoffs, branch closings at Phila's biggest bank
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.

About this blog

PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at,, 215.854.5194 or 302.652.2004.

Reach Joseph N. at or 215 854 5194.

Joseph N. DiStefano