Posted on 01/09/2012 3:09:57 PM PST by Dysart
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 Twinkie 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, they said.
Hostess also currently owes more than $50 million to vendors, which have been demanding payments on shortened timeframes after delivering goods because of Hostess's financial condition, one of the people said.
Hostess's filing would mark what's known as a "Chapter 22" in restructuring circles, since the company had already sought bankruptcy protection once before. Hostess, before called Interstate Bakeries Corp., slashed debt and costs during a four-year stint in bankruptcy court that began in 2004. The company has struggled since emerging from bankruptcy proceedings in February 2009.
The company's private-equity owner, Ripplewood Holdings, invested $40 million in Hostess last year to no avail. Hedge funds Monarch Alternative Capital, Silver Point Capital and others loaned the company $20 million late last year, but Hostess continues to have cash problems.
(Excerpt) Read more at online.wsj.com ...
Time to mount a twinkie defense.
The economy is picking up steam, doing great, just don’t ask those who work for:
Sears/Kmart
Macy’s
Hostess
Kodak
etc.
not Twinkies!
NOOOOOOOOOoooooo
WELCOME TO OBUMMERVILLE. WHERE EVEN FOOD STAMP BUYERS CAN’T HELP THE TWINKIE FROM GOING UNDER....
When hard times hit, folks purchase the less expensive store brands.
NNNNNOOOOOOoooooooooo............... not the twinkees and ho-ho’s......... NNNNOOOOooooooooooo.......
Oh, the twinkie-manity.
I think Macy’s just got a boost
A Twinkie sells for $1.49 here. Kind of expensive.
I blame Little Debbie
What???? No more Hostess cupcakes?
I grew up on those things, over 50 years ago.
NOOOOOOOOOOOOOOOOOOOOOOO not twinkies!! Welcome to Obamaville..where supposedly the economy is getting better but company after company is going down the toilet. Waiting for the Labor Department to say “UNEXPECTED!”
When I was a kid in Louisiana, Hostess tasted fresh, moist and soft and was impossible to beat.
Now their products taste stale and dry and loaded with chemicals. I don’t know if they changed recipes, or if it’s a difference in bakers, but compared to competitors there stuff is bad.
I've never trusted her...
this is truly sad... can the end of the world be far behind???
Go get yourself a good recipe for gobs and start baking
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