If you grew up in the Philadelphia metropolitan area, it is likely that Tastykake was a treasured part of your childhood. In my pre-weight-loss era of life, Krimpets alone just about made up one of my Food Groups. I still enjoy their sugar-free options. So, it is with sorrow that I read that Tastykake is considering selling out in the face of growing challenges in their financial situation.
Tasty Baking Co. president and chief executive Charles Pizzi said in a statement that "unanticipated operational challenges" related to its new bakery in Philadelphia's Navy Yard had lowered projected savings for the fourth quarter of 2010 by $3 million to $10 million.I truly hope Tastykake can pull out of the death spiral and be restored to its former glory. Otherwise, I hope any would-be buyer would keep around the old brand in some form, instead of just adding any signature offerings to their own line-up.
The company's shares plunged more than any other on the Nasdaq, giving up 37 percent of their value and hitting a 52–week low of $3.83 before closing at $4.05.
The company 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 and said it was looking at all options.