Posted on 01/14/2012 2:43:44 PM PST by Cronos
The maker of snack cakes including Twinkies, Ho Hos, and DingDongs has filed for Chapter 11 bankruptcy protection. But a company spokesperson has assured that production of the famous cream-filled treat will continue as usual for now.
“Throughout the proceeding, we’re going to operate business as normal,” said Hostess spokesman Erik Halvorson, according to CNNMoney. “They’ll keep making Twinkies.”
Hostess declared bankruptcy for the first time in 2004, and didn’t emerge until 2009, an unusually long time for the situation. Even more unusual is the second Chapter 11 filing (or “Chapter 22,” in some legal circles) so soon after.
Hostess blames unions and pension plans for their latest troubles, but many critics point the finger at the company’s “failure to freshen up a stale product line and keep up with consumers’ changing tastes”, as the Washington Post puts it.
But even if Hostess doesn’t survive this crisis, there’s a good chance that Twinkies will. Defunct companies can still sell of their intellectual property, like a brand name; and as CNN reports elsewhere, potential buyers were already looking in to the possible value of the iconic snack titles:
Buyers have made multi-million dollar bets on brand names like Polaroid, Sharper Image and even Borders that continue to resonate with consumers even after the parent company has liquidated.
What do you think? Will America ever be without Twinkies?
[Image via John D. Moore]
Has anyone blamed Bush for the twinkie crisis yet? If not, let me be the first. /s
SF
It will be if Michelle Obama has her way.
Since it’s established that Twinkies have a shelf life exceeding 25 years and that may well be longer than I have.....my bomb shelter is stocked accordingly.
Scrolled 26 posts to find what I wanted, and knew would be here. ROFL.
““Bimbo” that recently bought out Sara Lee. “
Nobody doesn’t like that Bimbo Sara Lee.
Ralcor bought Sara Lee. Bimbo bought Mrs Bairds.
Absolutely right! When you get a Ding Dong made juuuusssst right, it can’t be beat. I hope Hostess survives so I won’t be deprived of my Ding Dongs.
Bimbo did buy Sara Lee, or at the bakery part of it. My brother-in-law is a distribution manager for them, and is now a Bimbo employee. Ralcor just bought the refrigerated dough division.
well, I ate a Twinkie for the first time only when I was in my twenties and it was a sugar overload. It is horribly sweet.
I think that Grupo Bimbo just bought the baked goods
I just read about these divestments. What was the point of it? I don’t quite follow what Sara Lee is trying to do — just please the shareholders by sticking to high-growth sectors?
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