If you've had a doughnut at a local gas station, it's highly likely Theodoro Baking Co., made it. The Hazelwood-based commercial baker recently filed for bankruptcy protection.
What the Bankruptcy Means
The company remains operational and will seek debtor-in-possession financing to be able to pay vendors, as it has local and national customers.
David Cox, Hazelwood's economic development director said the city has issued the company a temporary occupancy permit allowing it to move into is new facility.
"The have partially moved into the new building (the old Pillsbury factory off I-270)," he said. "They are currently operating from both locations until they are completely moved in."
Theodoro's former location is behind Prairie Farms at 6038 N. Lindbergh Blvd.
In the Chapter 11 bankruptcy filed in St. Louis last week. Theodoro Baking estimates both its assets and liabilities range between $1 million and $10 million.
Its largest local creditors include its landlord Marla Deep Freeze LLC. It has a consent judgment for $164,871. Theodoro is disputing this. Theodoro also owes the I.R.S. $245,356 in income taxes, according to the filing.
But another possible creditor is the City of Hazelwood.
In June of 2011, Hazelwood City Council approved an Economic Development and New Employment Training and Opportunities Forgivable Loan Agreement with Theodoro for $770,000.
It was to be backed by a letter of credit. The city’s payback would be by business retention and by the business reaching certain goals such as employment levels based on an employment schedule included in the agreement. A certain number of jobs were to be achieved and maintained over a seven year period in order for the company to receive the loan forgiveness percentages through 2018.
Cox said the city has no idea where this agreement stands.
"Unfortunately at this point you know as much as we do," he told Patch on Wednesday. "It's really early and all we know is that they've filed.
"We are working with all parties involved to figure out where everything stands because the loan is still outstanding."
Bonnie Clair, Theodoro's attorney, said she was not at liberty to discuss the situation but did say a statement would soon be released about the bankruptcy.
Theodoro has about 200 employees. It operates its own fleet of 40 trucks that deliver to area restaurants and supermarkets.