Bidders for the recently closed Koffee Kup Bakery and subsidiary Vermont Bread Co. are mulling a lawsuit after a court-appointed receiver accepted a last-minute offer Monday to sell the businesses to Flowers Foods, a $4.4 billion maker of national.
Canadian baker to buy Koffee Kup, Vermont Bread Co. facilities
A Koffee Kup Bakery truck outside the Vermont Bread Co. in Brattleboro on Tuesday. Photo by Kevin O’Connor/VTDigger
The Koffee Kup Bakery in Burlington, seen on Tuesday, April 27, 2021, abruptly laid off most of its employees and shuttered the plant. Photo by Glenn Russell/VTDigger
Modified: 5/27/2021 10:24:12 PM
Atlantic Canada’s largest family-owned bakery is buying the recently closed Koffee Kup Bakery of Burlington and subsidiary Vermont Bread Co. of Brattleboro.
Mrs. Dunster’s, a New Brunswick distributor of baked goods across the Maritime Provinces and in Maine, announced its purchase Thursday just hours after receiving approval for incentive money from the Vermont state government to reopen the nearly century-old business.
BURLINGTON Koffee Kup has filed an emergency motion with the Chittenden Superior Court, asking the court to order Key Bank and the receiver of the assets of Koffee Kup
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BRATTLEBORO â A law firm representing the court-appointed receiver of Koffee Kup Bakery and its affiliated companies called pay issues reported by former employees and news outlets âa misconception.â
âNo funds were removed from any employee accounts,â the Albany, N.Y. based law firm of Nolan Heller Kauffman LLP, which is representing receiver Ronald Teplitsky, said in a news release issued Tuesday.
Instead, the firm says employees received less in their accounts or in their paychecks than the company initially said would be paid.
Former employees in Brattleboro and Burlington locations previously described being paid for vacation time not used then having it taken out of their bank accounts last week after facilities abruptly closed on April 26 due to financial issues.
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BRATTLEBORO â Koffee Kup and its subsidiary in Brattleboro, Vermont Bread Company, were shuttered Monday morning, resulting in a loss of more than 90 local jobs.
According to a Tuesday news release from Dorset Partners, which specializes in âturnaround management and acquisitions,â Koffee Kup had been struggling to make ends meet for the past four years.
âFor each of the last four years Koffee Kup has suffered substantial financial losses and was unable to find a way out of their troubles,â states the news release, which came from Jeff Sands, a âturnaroundâ specialist at Dorset Partners and the senior advisor in North America for American Industrial Acquisition Corp., which acquired a majority of the shares of Koffee Kup on April 1. âEmployees, lenders, suppliers and customers all went above and beyond to support Koffee Kup during that time.â