Tuesday, January 11, 2011

Say it ain't so, Tastykake!

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.

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.
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.


CRCHAIR said...

I agree. Krimpets are my favorite vacation food.

shadowmom1 said...

I hope someone doesn't buy it and close it down to lower their taxes. A company I worked for years ago did that. They took a valuable company and just trashed it. Maybe Tastykake could expand into other states? Like CT? And bring WaWa with you!!!

Nomad said...

Now there's an interesting idea. Have Wawa buy Tastykake for their own Wawa-branded snacks, and then use that as leverage to expand into new states. Hmmm.... Methinks shadowmom may be a genius.

shadowmom1 said...

It's good to know that someone finally sees my superiority!