November 20, 2008 8:57 PM
- Text
Lance Offers $30 Million for Bankrupt Archway/Mother's
(MoneyWatch) Archway and Mother's Cake and Cookie Company may be resurrected next month if a $30 million bid on the company's assets from Lance, a North Carolina snack company, is accepted.
The company abruptly shut down last month and declared bankruptcy. Archway's brands include Circus Animal Cookies, Salerno Butter Cookies and Archway Oatmeal Cookies.
Other bidders could still make competing offers under Archway's bankruptcy agreement. The deadline for bids is next Tuesday. The asset auction will be held Dec. 1.
Archway is owned by Catterton Partners, a private-equity shop that cited the credit crunch as a reason for the shutdown.
Lance said that if its bid was accepted, it would finance the purchase through its existing lines of credit.
Archway was founded in 1930. It faces lawsuits from employees who claim the company violated both federal and California state laws by not giving sufficient notice of the shutdown.
The company abruptly shut down last month and declared bankruptcy. Archway's brands include Circus Animal Cookies, Salerno Butter Cookies and Archway Oatmeal Cookies.
Other bidders could still make competing offers under Archway's bankruptcy agreement. The deadline for bids is next Tuesday. The asset auction will be held Dec. 1.
Archway is owned by Catterton Partners, a private-equity shop that cited the credit crunch as a reason for the shutdown.
Lance said that if its bid was accepted, it would finance the purchase through its existing lines of credit.
Archway was founded in 1930. It faces lawsuits from employees who claim the company violated both federal and California state laws by not giving sufficient notice of the shutdown.
Latest Now in MoneyWatch
- Insurers respond cautiously to contraceptive plan
- Judge: Legally, breastfeeding not related to pregnancy
- Budget deficit drops to $27 billion in January
- Why the Powerball Jackpot is part of my investment strategy
- Is the new VW Beetle diesel worth the money?
- Consumer sentiment highlights risks to recovery
- Valentine blues? 10 best cities to be single
- December trade deficit widens to $48.8 billion
- Alcatel-Lucent returns to profit in 2011
- 6 things never to say in a performance review
- $26B mortgage deal: Who gets the money?
- Friendly's CEO steps down
- Quarterly loss hits $3.3B at Postal Service
- Greeks rail against cuts as EU demands more
- 6 things you should never share on Facebook
- Make moves now to increase financial aid
- Valentine's Day: 9 places to save
Latest CBS News Headlines
on Facebook
on CBS News
- Jason Wu revisits Chinese roots at Fashion Week
- How Jason Wu picks models, tweaks looks for runway
- Libertine Fashion Week show big on embellishment
- Libertine Fashion Week show big on embellishment
on Facebook
- Adele sings a cappella for Anderson Cooper
- Beyonce and Jay-Z post first photos of Blue Ivy Carter
- Timothy Dolan: Birth control tweak a "first step"
on CBS News
