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Pa. Offers $1M Loan To Troubled Tastykake Maker

HARRISBURG, Pa. (AP) — Gov. Ed Rendell says the state is prepared to offer the financially troubled manufacturer of snack foods line Tastykakes a $1 million loan.

Rendell said at a news conference Tuesday that Philadelphia-based Tasty Baking Co. hasn’t yet taken him up on the offer because it’s a portion of what they will need.

The company announced last week that several factors led it to consider its options, including a potential merger or sale.

Its statement said the company “is currently experiencing extremely tight liquidity.”

(© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed)

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  • Ruth

    I meant, “you can’t BEAT that!”

  • Ruth

    I think it’s really sad. I love the ones with the peanut butter enrobed in chocolate. You can’t be that. Delicious. I didn’t grow up on the east coast, but whenever we would come east, we’d have Tastykakes. I can’t imagine them not being a Phila. company. I hope they can hang on somehow.

  • The Drunk Chef

    Freaken A! I can not read One Flipping Story on any website with out someone fighting! Stop the bickering! You are complete strangers, You have NO idea who is on the other end of that message. Keep comments about the article and keep the comments directed towards others in your tiny heads… and move your head out of your behind and talk like a normal person.

  • John Dalewis

    Hey STUPID… Simpletons? Wow, I guess I can live with that label if it will help boost your self-esteem this afternoon. I’d give you the definition of the word ‘assume’ if I weren’t such a simpleton. Did I in any way connect Tastycake’s issues with my complaint about their pies, or did you make the connection yourself? Your handle says it all… STUPID!

  • Stupid

    Tastycake operates at an $8mm quarterly loss. In 2006 they paid double this loan in taxes. This is a headline-grabber by the Gov.

    And the company failing has nothing to do with the recipes you simpletons:
    They simply did not retire enough of their debt in ’06-’07 and it became too expensive to roll that debt over the past few years as corp and HY bond prices rose so they were forced to deplete their working capital at the expense of replacing plant and equipment.

    Go back to watching American Idol and reading about Lindsay Lohan.

  • Guess Who

    Did Eddie have them use $1 million of cupcakes as collateral? I hope their quality controll improves. Some of their cupcakes I’ve recently bought have had major icing problems,

  • B

    How many Philadelphian’s will be added to the unemployment lines if they close? What will the city lose in revenue? Will those that worked at that plant be able to find another job before their unemployment checks run out?

    • Nick

      If the plant does close and people lose their jobs there is NO NEED to worry…..Obama and Rendell promise that GREEN JOBS will be here very shortly!!!!! Really! …. it was part of that wonderful stimulus bill!

  • x man

    Well Tastykake is another Philadelphia institution that will be gone soon, so sad. I love the Krimpets and the Peach pie. But with the amount gmo’s in it the product was bound to decline. From time to time i can’t resist the krimpet and pie fix. I still remember Franks soda and they used to have a bottling plant Hunting Park or Juniata Park on Erie Avenue. Well at least i’ll have the memories.

    • Nostromo

      I can still ‘hear’ Richie Ashburn touting Frank’s Black Cherry Wishniak between innings. All of those little things which we took for granted all too often manage to slip away.

  • derpie

    As much as there products cost they should be giving PA a loan

  • John Dalewis

    You can’t even hold one of their pies without it crumbling in your hand. They make the crust so thin now, which is why they started using the tin containers. Tin must be cheaper than the ingredients used for the crust.

  • sosororo

    They changed the lemon pie recipe. It just doesn’t taste the same.

  • michelita

    Fatty fatty fatty!

  • Deb Thompson

    If you get CHEAP on the recipes you will but out a LOUSY product! Use the recipes of ole!

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