Creditor takes over bakery
By Andrew Gomes
Advertiser Staff Writer
Hawaii Baking Co., one of the state's largest bakeries, has been taken over by one of its creditors, which has split up manufacturing and distribution operations and shut down some retail outlets.
James DeYoung, Hawaii Baking president, issued a statement to the company's estimated 180 employees Nov. 16 telling them that the company "will cease operations due to its inability to meet its obligations to numerous creditors."
Other companies immediately assumed parts of Hawaii Baking's business, which mainly supplies supermarkets and restaurants with name-brand and specialty breads.
DeYoung could not be reached for comment during the past two weeks. According to the statement to employees, Arizona-based First Pacific Food Co. Inc. acquired Hawaii Baking's distribution assets.
Former Hawaii Baking distribution employees have been offered delivery routes as independent distributorships by First Pacific Food.
Another company, Fresh Start Bakeries, a California-based firm with operations in Hawai'i, assumed manufacturing Hawaii Baking products, which include Holsum and Oroweat brands.
Fresh Start has hired substantially all of Hawaii Baking's roughly 80 manufacturing employees, according to the union that represented Hawaii Baking employees.
Several of Hawaii Baking's eight thrift stores, including ones on O'ahu, Maui and Kona on the Big Island, have been closed.
Craig Olson, president of Fresh Start, referred questions to First Pacific Food. First Pacific Food, headed by Will Carter, could not be reached for comment.
The changes end a run by what was once one of Hawai'i's largest companies, which had an estimated $25 million in annual revenue and rivaled market leader Love's Bakery.
According to former employees, the business struggled in recent years.
"It's so sad that it came to this," said 18-year employee Frederick Lopez, a sales representative/driver on Kaua'i. "Ten years ago we were really rolling. Right now we see some new potential. If it works out, it'd be great."
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
