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Interstate Bakeries to close Iowa plant

Interstate Bakeries Corp., the bankrupt maker of Hostess Twinkies and Wonder Bread, said Wednesday that it plans to close its bakery in Davenport, Iowa, by Nov. 4 and cut about 150 jobs.

The closing will result in about $5.5 million in expenses, including $1.5 million for severance pay, Interstate said Wednesday in a statement.

Interstate, which has Utah operations in Salt Lake City and Ogden, has announced plans to cut about 3,750 jobs, or more than 10 percent of its work force, to eliminate poorly performing units and trim costs.

The company, based in Kansas City, Mo., filed for Chapter 11 bankruptcy reorganization in September 2004, citing rising health-care, pension and other costs and reduced demand for its products.

Interstate shares rose 65 cents, or 5.8 percent, to close at $11.95 Wednesday in over-the-counter trading. The shares have risen 87 percent this year before Wednesday.