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.
(Excerpt) Read more at online.wsj.com ...
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.
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