Biggest US bakery hit by dough drop

The biggest bakery in America filed for bankruptcy protection yesterday after the popularity of low-carb diets forced a drop in sales.

Interstate Bakeries, makers of the famous US snack Twinkies, filed court papers indicating it intended to continue operations while seeking protection.

The company, which operates 57 bakeries and employs more than 33,000 people, reported a loss of €5 million in the last quarter.