After buying out the J. V. Gasser Bakery on the NW corner of W 4th and St Elizabeth St, E. P. Southard founded and operated the Owensboro Bread and Ice Cream Co. In 1920, he sold it to Forrest Head, who sold it to Foor Brothers Bakery in 1929. The Foors sold it to Prinz Baking Co in 1931, then it sold to Grocers Baking Co in 1937, locally known as the Honey-Krust Bakery. In 1938, the construction of the bakery was started on the northeast corner of 25th and JR Miller Blvd.
In 1959, Dallas-based company Campbell-Taggert Associated Bakeries Inc. bought the old Honey-Krusty Bakery and it became known as Colonial Bakery. In 1965, 350,000 loaves of bread were produced each week. Other owners then followed with EarthGrains (1996), Sara Lee Corp (2001), and Bimbo Bakeries (2011).
Bimbo Bakeries announced in July 2017 that it would be closing the local bakery, laying off 125 employees.