Skip to comments.Twinkies Maker Preparing for Chapter 11 Filing
Posted on 01/10/2012 6:45:05 PM PST by 6SJ7
Hostess Brands Inc. is preparing to file for Chapter 11 bankruptcy protection as soon as this week, said people familiar with the matter, a move that would mark the second significant court restructuring for the Twinkies and Wonder Bread baker in the past several years.
The privately held Irving, Texas, company, which employs roughly 19,000 people and carries more than $860 million in debt, has been facing a cash squeeze amid high labor costs and rising prices for sugar, flour and other ingredients, according to people familiar with the matter. Those costs together have proved higher than the company's roughly $2.5 billion in annual sales, creating losses and cash shortfalls, the people said.
Hostess also owes more than $50 million to vendors, which have been demanding payments on shortened time frames because of Hostess's financial condition, one of the people said. Most of those goods and services were provided to Hostess within the past three weeks or so.
Hostess's filing would mark what is known as a Chapter 22 proceeding in restructuring circles, since the company had already sought bankruptcy protection once before.
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Hostess are the highest priced packaged cup-cakes in the grocery store.
Have you tried a Twinkie recently? I did and I swear it was just awful. The company must have changed the recipe or something. The cake part was dry and the filling was grainy. Certainly tasted different than say... ten years ago. IMHO.
Now this takes the cake.
They cost too much, store brand or Little Debbie is cheaper.
Note to self: Clean out the pantry! Green, furry Twinkies may be lurking inside. LOL!
rising prices for sugar, flour and other ingredients
Maybe it’s just your tastebuds that got ten years older. They Tweekies I had the other day tasted great!
If it had been just me then I would agree. However, the kids said they tasted “weird” as well. Granted, I don’t purchase them all the time but the two older ones said they didn’t “taste the same”. Perhaps a “bad box” or they changed the recipe to reduce the calories or cut costs?
How could you possibly demonize the snackcake that gave rise to a criminal defense against charges of going postal on a liberal?
I couldnt stand Twinkies when I was a teenager; Just too sweet and not much flavor other than a little vanilla.
I might of liked them when I just a kid but we could not afford junk food until I was a late teen.
That is not possible. It is a well-known fact that the shelf life of Twinkies is a bit over 100 years.
Back in the mid-1970s, nothing was better than a couple of Twinkies. I used to spend a good part of my newspaper delivery money on Twinkies. After school each day, I'd stop at the local variety store (this was before convenience stores) and get a root beer and a two-pack of Hostess Twinkies for the walk home. Those Twinkies were delicious, soft sponge cake exterior that would stick to your fingers and a tasty cream filling that would make your head spin (due to the sugar high).
Twinkies do not taste that way today.
Or perhaps the QA is slipping.
Haven’t you ever tried a deep-fried Twinkie with raspberry dipping sauce on the side at a State Fair?
That is true. They are not competitively priced.
Have you ever had one frozen? Delicious!! Honestly, this is very sad news and I mean that.
Twinkie the Kid rides no more. Sad.
Oh no! No twinkies at queer weddings?
I misread the title as “Chapter 11 FILLING” (as opposed to “creme” filling) and wondered what bankruptcy actually tasted like.
“Hostess are the highest priced packaged cup-cakes in the grocery store.”
That’s true. Almost prohibitively so - at least to me anyway.
Forget the Twinkies. It’s the chocolate cupcakes filled with marshmallow that I’ll miaa. Also those choxolate, coconut covered snowball cupcakes that are dyed green for St. Paddy’s day.
The power of suggestion. I haven’t had one in years. Probably won’t go through the night without getting one.
How do you know it wasn't ten years old now?
Sounds like you bought both Twinkies from the same batch.
“Companies run badly wind up in ruins. “
Companies held hostage by labor unions end up in ruins.
Same old story - The unions bled the company, the company didn’t have enough money left to make improvements in production and distribution efficiency, all while having to charge higher prices and fund overloaded pension plans.
Result: Sales fall while costs are not contained, followed by losses and inability to pay suppliers.
This is their second filing since 2004. And it was predictable.
Don’t bet money on them surviving this one.
Some other company may buy some trademarks and product formulas in the liquidation.
Yeah, the great Hostess Cupcakes! I loved those things. Haven’t had one, or even thought of one in years. Come to think of it, don’t think I’ve seen one in years.
The CAFTA trade agreement was supposed to put those rotten American sugar farmers with huge capital investment in harvesting and storage equipment out of business and allow ‘lower’ priced imports in from the Dominican Republic harvested by Haitian slaves. This they claimed, was going to be a great boon to America.
‘free traitin’ “free traders” do in another business and 19,000 jobs.
I hope this doesn’t mean I can’t have my favorite breakfast anymore. After all, even a garage full won’t last forever.
With the Hostess bankruptcy filing, hopefully all of these cupcakes disappear:
-LSU football team
I always liked Twinkles.
Back when I "played" in a "band" in the late 1980's, we would get a box of Hostess™ Ding Dongs before our practice sessions to keep us going.
Mmmm, I love chocolate with cream filling!
Oops, premature posting. If it happens again, I’ll see a doctor.
No I don’t do much Fair food.
My stepson tried a deep fried Snickers bar that he raved about though.
IMO it’s not just Twinkies that taste different but I opened a box of Raisin Bran the other day and the taste and appearance was different. Just two of a whole string of foods that are just no longer the same. Makes me very angry. Seems like nothing tastes the same as it used to.
I haven’t seen a Hostess product in years. At the grocery store it’s all Little Debbie and at convenience stores it’s some off brand. The best Hostess product was French Pastry but they didn’t carry it for long back in like the ‘70s.
The finest dessert in the world is a frozen Hostess cupcake with a glass of cold, whole milk. Period!
Nooooooooooo. Not Twinkies. As Queen of the Twinkies how did this happen? Why wasn’t I told? Heads will roll I tell ya.
“Seems like nothing tastes the same as it used to.”
Seriously, you might want to mention that to your doctor.
Hard to think of a more disgusting food than a twinkie.
I agree. Ring Dings don't taste the same either. I wonder if they changed the filling.
Ah, but now Funnybones, they are as good as ever.
“Hard to think of a more disgusting food than a twinkie.”
They aren’t my cup of tea either. But when did I say anything about twinkies?????
Actually at one point they had a light Twinkie. It was less calories, less sweet and lighter. Much better than the original...guess it didn’t catch on cause they disappeared. Well, now looks like the original is gonna dissappear too!