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LEGAL ACTION FILED AGAINST TAYSTEE BAKING AND STROEHMANN BAKERIES

 LEGAL ACTION FILED AGAINST TAYSTEE BAKING AND STROEHMANN BAKERIES
 NEW YORK, May 21 /PRNewswire/ -- Taystee Baking Company and Stroehmann Bakeries Inc. were named as defendants in a lawsuit filed by Lynn Bell and six other individuals in the Supreme Court of the State of New York, County of Queens. The action apparently seeks legal and equitable relief regarding the closing of the Taystee bakery in July of this year and financing provided by the City Industrial Development Agency. The relationship of the plaintiffs to the Industrial Development Agency financing is not clear.
 Although company officials and their attorneys have not had an opportunity to examine in depth the papers, a preliminary review indicates that the suit is totally lacking in any legal merit. A response to the specific allegations in the lawsuit must be delayed until the papers have been more fully reviewed.
 Several general points can be made:
 -- Neither of the unions representing employees at the bakery is a party to the action.
 -- The decision to close the bakery was made only after continuing losses of up to $10 million a year, despite the investment of approximately $14 million to upgrade the operation since 1988.
 -- Taystee has met and will continue to meet all of its financial obligations regarding the Taystee bakery, including thsoe it inherited when it bought the Flushing facility in 1988 from American Bakeries Company.
 -- Even after the Flushing bakery closes, Taystee will continue to employ close to 600 individuals in the New York metropolitan area.
 Taystee remains committed to growing its business in New York City and the surrounding area by providing high quality products at the lowest possible price without taxpayer subsidies.
 -0- 5/21/92
 /CONTACT: David Allshouse of Taystee Baking, 215-672-8010/ CO: Taystee Baking Company; Stroehmann Bakeries, Inc. ST: New York IN: FOD SU:


KD-SB -- NY100 -- 3050 05/21/92 16:36 EDT
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Publication:PR Newswire
Date:May 21, 1992
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