Ripple Effects of the Parmalat-Archway Debacle

With Parmalat under investigation in Europe and the United States, Archway Cookies finds itself on the auction block. Parmalat Bakery Group, North America confirms that a consultant has been retained for the purposes of reviewing the prospects of a potential sale of the Bakery Group.

Archway, based in Battle Creek, Mich., makes Archway cookies and the Mother's label Original Circus Animal Cookies and also makes private-label cookies. Archway also operates a plant in Ashland, Ohio.

Italian authorities have arrested the founder and several top executives of Parmalat Finanziaria S.p.A. in an alleged multibillion dollar fraud. The U.S. Securities and Exchange Commission also has sued, accusing Parmalat of engaging 'in one of the largest and most brazen corporate financial frauds in history' that forced Parmalat to file for bankruptcy.

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