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Ovens going cold in century-old bakery

| Saturday, Jan. 19, 2013, 12:02 a.m.
A sign in front of Schaller's Bakery in Greensburg, a family-operated business founded more than a century ago, announces the store's closing. Guy Wathen | Tribune-Review

Schaller's Bakery Inc., a century-old Greensburg business that was emerging from bankruptcy, is closing its doors.

Schaller's announced to customers on its sign outside the Highland Avenue building Friday it was closing and a half-off sale was in progress.

Warren E. Schaller, president of the family-owned bakery that has been in business since 1910, declined to comment.

Schaller's filed for bankruptcy in February 2012, seeking protection from fewer than 50 creditors that were owed at least $335,000. At the time, Warren Schaller said he would continue to keep the bakery operating as it reorganized its finances.

Schaller said last year the business was hurt by increasing costs of fuel used in making deliveries of baked goods, as well as rising costs of ingredients to bake the bread, rolls and pastries. Schaller's operated a convenience store in the bakery.

Schaller's Bakery had been scheduled for a hearing Friday in Bankruptcy Court in Pittsburgh, where it sought a final decree in its case.

The company said in a July court filing that two of its customers, Reinhart Foods of Ontario and Kings Family Restaurants, had indicated that when the bankruptcy case was closed, it would offer Schaller's more business.

The company said in a Dec. 27 court filing that it had made payments to some of its creditors and had the money to make monthly payments to all remaining creditors, for the next 59 months.

Under the reorganization plan approved by bankruptcy court in September, Schaller's said some of its creditors would receive full repayment of their debts, and some unsecured creditors would receive 75 cents for every dollar owed.

According to the court documents, Warren E. Schaller and Wayne E. Schaller were both owed $11,725 for unpaid wages for work performed in the six months prior to the February 2012 bankruptcy filing.

Joe Napsha is a staff writer for Trib Total Media. He can be reached at 724-836-5252 or jnapsha@tribweb.com.

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