Dallas, Texas– Hostess Brands, Inc. said today that it will be closing its single line bakery in Decatur, Illinois, due to current market conditions and necessary operations efficiencies. The bakery, which makes Butternut and Wonder varieties of hot dog and hamburger buns, will cease production on October 22, 2010.
Changes in local market conditions and the recent loss of a significant co-packing contract were the key factors which lead to the decision to close the Decatur bakery which employs 65 people. Hostess Brands will continue to serve area customers without interruption sourcing bread products from other bakeries in the central Illinois region. Customer delivery routes are staffed by 15 sales and delivery personnel. Those jobs will not be affected. In addition, the Butternut Retail Outlet store at 2800 N. Main Street in Decatur will continue to operate.
The bakery has been operating since 1920. The 43,000 sq. ft plant was built at 756 N. Main Street as Conklin Bakery. It was sold to Purity Baking Company of Decatur in 1946, which produced Sunbeam products. In May, 1986, Purity Baking Company sold to Interstate Brands (IBC). In 1995, IBC merged with Continental Baking Company and was forced by the FTC to divest the Sunbeam brand. Since 1995, the bakery has produced buns and rolls for the Butternut and Wonder label and contract customers.
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