Flowers Foods acquires assets of Royal Cake Co
The acquisition was approved by the United States Bankruptcy Court for the Middle District of North Carolina, Winston-Salem Division, on August 18, 2005.
05/09/05 Flowers Foods has announced the acquisition of substantially all the assets of Royal Cake Company, Inc., a Winston-Salem, N.C.-based bakery, for $10 million. Flowers assumed no liabilities of Royal other than those associated with assumed contracts. The acquisition was approved by the United States Bankruptcy Court for the Middle District of North Carolina, Winston-Salem Division, on August 18, 2005.
The bakery will operate as a wholly owned subsidiary of Flowers Foods Specialty Group under the name Flowers Bakery of Winston-Salem, LLC. Sam Burnette, Royal Cake president, will continue as president of the new Flowers subsidiary.
Royal Cake, with 2004 sales of $24 million, filed for bankruptcy in February 2005. The company employs approximately 190 people and produces cookies, cereal bars and creme-filled cakes that are sold under the Royal, Bakers Best, and private label brands.
