Good news for the Tasty Baking Company and TastyKake lovers all over this land. Three months ago the company was facing bankruptcy. Late on their mortgage payment and $133 million in debt. The state of Pennsylvania loaned them about $40 million in one way or the other just to keep them going until a buyer could be found.
They found one. Flowers Foods, Thomasville, Georgia, bought the company for $4 a share. More than double what it was worth yesterday, and more than three dollars lower than the $7.73 per share high in the trailing 12 months. Too bad you didn’t buy any shares at the end of last month when it was at the low of $1.58. But at $4 now, it’s still a good buy now that they gain the distribution system of Flowers.
It looks like a good purchase. Flowers gains a popular and quality snack food line, and has the distribution system in the South that Tasty Baking Co. lacked. And Flowers picks up a northeast distribution system that they lacked.
Hopefully soon, I’ll be able to get my TastyKakes from the local Flowers distributor instead of having them shipped to me from Philadelphia. A three-week ordeal.
As a TastyKake lover myself, here’s hoping it all works out. Under the right management, it seems like a sure thing.