Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 15 pages
Data source: Published sources
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Abstract
The largest bakery company in the US, Interstate Bakeries Corporation (IBC) had been operating successfully with popular brands like Wonder Bread and Hostess cakes, since the late 1920s. However, IBC had been reporting stagnated sales and its net income had been falling since 1999 owing to competition from manufacturers of low-carb food products like Atkins, and increased operational costs. In 2004, the company filed for bankruptcy reporting a debt of $1.320 billion. With the resignation of its CEO (Chief Executive Officer), James Elsesser, IBC hired a turnaround consultant firm, Alvarez & Marsal (A&M), and Tony Alvarez was appointed the new CEO of IBC in order to increase its sales and regain profitability. The case offers scope to discuss the factors leading to IBC''s tryst with bankruptcy and the challenges faced by A&M in turning around IBC. A structured assignment ''304-608-4'' is available to accompany this case.
Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 16 pages
Data source: Published sources
About
Abstract
The largest bakery company in the US, Interstate Bakeries Corporation (IBC) had been operating successfully with popular brands like Wonder Bread and Hostess cakes, since the late 1920s. However, IBC had been reporting stagnated sales and its net income had been falling since 1999 owing to competition from manufacturers of low-carb food products like Atkins, and increased operational costs. In 2004, the company filed for bankruptcy reporting a debt of $1.320 billion. With the resignation of its CEO (Chief Executive Officer), James Elsesser, IBC hired a turnaround consultant firm, Alvarez & Marsal (A&M), and Tony Alvarez was appointed the new CEO of IBC in order to increase its sales and regain profitability. The case offers scope to discuss the factors leading to IBC''s tryst with bankruptcy and the challenges faced by A&M in turning around IBC. A structured assignment ''304-608-4'' is available to accompany this case.
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Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 16 pages
Data source: Published sources