Deadline For Tastykake

PHILADELPHIA (CBS) – The maker of Tastykakes has a financial deadline Friday, as an already-late loan payment comes due.

Financially-troubled Tasty Baking Company faces a due date Friday on a loan payment that should have been made on the first of the month.

According to the Philadelphia Inquirer, Tasty faces a 2 p.m. deadline to make the payment, or cut a deal for more time.

Industry experts tell the paper one scenario would have the banks grant the company a 30-day extension, giving Tastykake time to refinance, or find a buyer.

Tasty last week said fourth-quarter earnings were below expectations, partly because production efficiencies at its new Navy Yard plant hadn’t materialized.

“Operation Save Tastykake” Web sites are cropping up with online petitions from Philadelphians who think fondly of butterscotch krimpets and chocolate juniors. And Governor Rendell says the state would lend the company $1 million if need be.

Tastykake has called Philadelphia home since 1914.

Reported by Mike DeNardo, KYW Newsradio; Dray Clark, CBS 3

  • robert van winkle

    why don’t you raise prices again,i find it very strange that tasteykake and hostess and drakes and little debbie all raised there prices at the same time.Why can’t tasteykake give the other a run for there money by being cheaper,it just doesn’t make sense that they are all the same price…

    • Mark St.Bernard

      That would be exactly the correct response for their current predicament. Not a temporary sale price but just experiment and make the price of a pie around 75 cents. Lean on your suppliers. Get rid of the tins. Don’t mess with the quality. First it would force your competitors to drop their prices which should give you more leverage to force your suppliers to go along. Sales would definitely increase (I would definitely buy more). Regardless of what your studies tell you, your biggest problem is PRICE.

  • murky

    OK here is the last word. If you can’t make a decent chocolate cupcake than you do not have the wherewithal to stay in business. I’ve eaten Tastykakes since I was a kid, they used to be good but now they taste horrible. I’ve given them several chances, but more than a year ago I stopped buying Tastykakes. It’s not much to ask, but if you can’t make a decent, I say just a decent, chocolate cupcake then you don’t deserve to be in business. It’s just trash. Why give money to an organization that’s proven to be a failure, especially government money. Far too often these days that’s where we find ourselves being lowered into the sewer. You know what I’m sick of, all the pizza places around here, but yet, you can’t get a decent slice of pizza anywhere. I’m just sick of it. I say, if they can’t do it throw them out. There’s a guy around the corner who has a bakery, and he’s working hard and he puts out a good product. Why not give him a chance, rather than chase the second rate crew down the toilet. With all the secound rate trashy competition out there If you can’t make a simple chocolate cupcake, then you’ve got real troubles. Is this simple chocolate cupcake too much to ask? The answer, no. So I say good riddance tasty cake. You had your day ,but you snooze, you lose. And thats the way the cookie should, I say should, crumble! But nooooooo, we go further down the drain. Where will it end, I ask, when a society like ours can’t even produce a simple chocolate cupcake. Where will it end.

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    Part of why my sugar level is up, but I still love them TastyKakes.

  • Ooley Gooley

    Butterscotch Krimpets!!!!!!!!!!!!!!!!! They are finest snack known. I even have a Butterscotch Krimpets t-shirt.

    When we were kids, my mom would take us to the food store shopping. When she was almost done shopping, she would take a package of Butterscotch Krimpets and give us each a krimpets. In those days, they came 3 in a pack and they were at least twice the size. When we got to the register, she would put the empty wrapper on the counter and the woman would ring up the empty wrapper. Each time we went, the woman at the register (we would go to the same one) would joke, “Where is the Butterscotch Krimpets wrapper”? Mom would put it up there. Hey it kept us quite in the store, knowing near the end of the trip, we would get Butterscotch Krimpets

  • J. Scott

    I have been enjoying Tastykakes since 1946 when I was 6 years old. Except for time spent in the Army I know I have had at least one pack every day.I am 71 years old, not overweight and have low cholesterol. The quality and portions have suffered and yst trying to come up with new products hurt. Look how long Peanut Butter & Jelly krimpets lasted-a month? I have written many times to the company over the years always complementing them on their cup cakes and krimpets and stressing how important the product is but changing the quality to cut corners hurt. Get back to basics as many have suggested. The product will save you or sink you. Cut the variety way back. Too many choices for the same thing-low fat, regular, double iced, low sugar. Stop already. Stay with regular and try going back to your original reciepes.

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  • cjc4

    I am surprised how many people believe that suddenly buyiing the product today will make a difference. Tastykake will not see that money for over a month. The chain grocery stores pay on 30 day terms and are already obligated towards what is on the shelf. It will result in more production, but they need to be certain the demand will persist before adjusting their production plan. There is more to it than meets the eye and right now the money is due today–not next month!

  • NS

    Tastykake is in trouble because overspending, higher prices, lower quality, and smaller portion sizes. Maybe they should start by going back to basics and getting a CEO with a clue. Why hasn’t Dizzy Pizzi been fired for poor performance? Why waste money on unnecessary tins under the pies? If they can’t compete and survive, too bad. See ya, bye. No more bailouts for failures.

  • johan

    Tastykake needs to expnd to other parts of the US. Every once in a while I see them on the shelves in my local convience store here in Texas. They don’t last long.

  • Anne Frankenstein

    The Eagles should give Tastykake the money since they are doing nothing for Philadelphia, or they should collect taxes from the drug dealers on the corner.

  • x man

    Is Pennsylvania broke? I thought so , but would not know with the Governor giving out bailouts like candy. The same governor who bailed out Boscov’s. Tastykake is pure Phlladelphia, but the product has become lame. Let it die, and nothing lasts forever anyway. I’ll just go to the supermarket and pick up some Entenmann’s when its on sale, or go to Dunkin Donuts or the new Krispy Kreme in Fox Chase. There will be no shortage of snack foods if Tastykakes disappeared.

    • caligal226

      How about the jobs that would go along with it?? The money would be a loan. As was the Boscovs support. And Boscovs is stronger than ever again. Hundreds of jobs saved!! It’s more than saving the brand. It’s saving jobs!!!!

  • Kevin R. Consolo

    The Outgoing Governor should not pledge $1million to Tastykake. Enough bailouts. They out spent themselves in there big move to the Navy Yard and blame the ecconomy. They fat cats incharge of the company got greedy and over spent. Now they are gambling with people’s jobs. Its a shame but if it goes under its all their own fault. Did we bail out Propper brother Furniture who are closing after 100+ years in Philly? Clover? or any other Philly staple? NO! High prices drive people away. Doesn’t the Steps to the President of the company’s office have a Million dollar price tag? Look into that before the State pledges Money!

  • jtc

    There are several things Tastykake should never have done;
    1) never should have spent time and money developing new products that no one is interested in.
    2) never should have spent time and money redesigning logos and graphics of the packaging – including little tin pans for the pies.
    3) never should have moved
    4) never should have counted on “anticipated savings” – relocating is always an expense and always incurs additional and unforseen costs (not savings) unless you are downsizing, not expanding.

    Why did Tastykake feed the need to reinvent the wheel.
    Some things are better left alone.
    They took a stupid risk and blew it.

    • cjc4

      You only have one valid point. In order to remain competitive, every business has to adjust its product line and presnetation. The problem is in their choices and not anticipating the market. The money directed towards the graphics on the packaging is not going to save the company–get real. Marketing research and advertising are expensive, but a necessary evil. They may need a better marketing team. Better A/R management may be necessary, as their problem relates to cash flow and their product is persishable. You cannot make judgements on how the business operates from afar and a lack of understanding as to the real costs.

  • Scot Dence

    I love Tastycake’s but they have become outrageous in price. I hope they find a way out of this financial problem. I would hate to see them be purchased by one of their competitors. Most of the other snack cake products are terrible.

  • vince. roberts

    come on philly you know philly would not be philly without them.

  • VietVet

    Make a quality product or get out of town – move to a place where people will enjoy tastelesscakes. Too much concern about the bottom line and no thought about quality. Tastelesscakes should think about what consumers want and then produce it. If it is good, it will sell.Otherwise why should we waste our money when there are so many local bakeries in many neighborhoods who will do what it takes to satisfy our need for comfort food. Good luck, hope you re-invent Tastycake!

  • joe

    Suzy Q® – Here’s to You!

    How do you eat a Suzy Q? Do you lick the crème filling around the edges or just bite into it? For more than 40 years, sophisticated snack cake connoisseurs have been licking their fingers while mouths full of crème filled Suzy Qs delight their taste buds.

    The oblong sandwich of either banana-flavored or devil’s food cake with white crème filling was invented in 1961 and named after the daughter of Continental Bakeries Vice President Cliff Isaacson.

  • joe

    ya cant beat a drakes yodel or a hostess apple pie NY baby.. Classics

  • Barbara Durham

    TASTYKAKE IS PHILADELPHIA!!! When we come up from SW Florida, I always bring an extra suitcase so I can bring home a ton of TandyKakes (we can’t get them here). Come on Philadelphia and New Jersey!!! You KNOW you love them! Don’t let them go by the wayside!!!

  • trueism

    P-Poor Management decisions. Get rid of those old ones, and get some quality Managers/like they want their products to be! They made a quality product even before they purchased new equipment. Now, if you’ve noticed, it’s not the same quantity for the price the public is paying. They need better Management. First, they shouldn’t sell to Companies that don’t pay them. Like A&P, and all their subsidiaries.. And if they want to continue as a “Market Leader”. Start making new products with their so-called new equipment. Don’t just follow and wait for Kraft Foods to buy them out.

  • Judy Powers Boyles

    This is just sad! Tastykake is a part of Philadelphias name!!!!!! It goes along with the name as do cheesesteaks!! This is just another example of how our economy is hurting! Im going to buy a few boxes…..come on PA do the same!!!!!!!!

  • dave ziegler

    The Last thing in the world I want to see is someone like Flowers or Little Debby buy Tastykake. And then turn the product into the same trash they make! tastykake’s are the best store bought line of cakes in the world in my mind. Something has to be done to save this company, it is most unfair if they go down because A&P went bankrupted. and did not pay them Lets go out and buy as many tasteykakes as we can today.

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