Actually, the company is very likely going down for the count. There are three hedge funds that bought up the assets after they filed Chap11 the first time, and they’ve poured money into this company. When Hostess filed Chap11 for the second time (earlier this year), the hedge funds decided that unless they get concessions from the unions on the pension issue that they’ll realize more value by breaking up the company and selling it off.
The Mexican conglomerate, Groupo Bimbo, owns most of the mass-consumer bakeries in the US. Sara Lee, Entemann’s, etc - all bought up over the years by Bimbo. If Bimbo doesn’t buy the Hostess assets, I don’t know who will.
You bring up important facts making recovery that much more difficult, but well known brand names and popular products tend to return eventually.