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Hostess Brands Preparing for Chapter 11 Filing
WSJ ^ | 1-10-2011 | Mike Spector

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 ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: bankruptcy; hostess; obamanomics; twinkie
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Is nothing sacred anymore?

Time to mount a twinkie defense.

1 posted on 01/09/2012 3:10:02 PM PST by Dysart
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To: Dysart

The economy is picking up steam, doing great, just don’t ask those who work for:

Sears/Kmart
Macy’s
Hostess
Kodak

etc.


2 posted on 01/09/2012 3:12:58 PM PST by brownsfan (Aldous Huxley and Mike Judge were right.)
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To: Dysart

not Twinkies!

NOOOOOOOOOoooooo


3 posted on 01/09/2012 3:13:26 PM PST by silverleaf (Common sense is not so common- Voltaire)
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To: Dysart

WELCOME TO OBUMMERVILLE. WHERE EVEN FOOD STAMP BUYERS CAN’T HELP THE TWINKIE FROM GOING UNDER....


4 posted on 01/09/2012 3:14:10 PM PST by ncfool (The new USSA - United Socialist States of AmeriKa. Welcome to Obummers world or Obamaville USSA.)
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To: Dysart

When hard times hit, folks purchase the less expensive store brands.


5 posted on 01/09/2012 3:15:03 PM PST by formosa (Formosa)
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To: Dysart

NNNNNOOOOOOoooooooooo............... not the twinkees and ho-ho’s......... NNNNOOOOooooooooooo.......


6 posted on 01/09/2012 3:15:43 PM PST by joe fonebone (Project Gunwalker, this will make watergate look like the warm up band......)
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To: Dysart

Oh, the twinkie-manity.


7 posted on 01/09/2012 3:15:58 PM PST by Da Coyote (Z)
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To: brownsfan

I think Macy’s just got a boost


8 posted on 01/09/2012 3:16:09 PM PST by nuconvert ( Khomeini promised change too // Hail, Chairman O)
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To: formosa

A Twinkie sells for $1.49 here. Kind of expensive.


9 posted on 01/09/2012 3:17:49 PM PST by tennmountainman
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To: ncfool

I blame Little Debbie


10 posted on 01/09/2012 3:18:35 PM PST by Califreak ("Burnt By The Sun")
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To: Dysart
Another unintended consequence of the war on drugs- less twinkie eating at midnight.
11 posted on 01/09/2012 3:19:05 PM PST by 11th Commandment (http://www.thirty-thousand.org/)
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To: silverleaf

What???? No more Hostess cupcakes?
I grew up on those things, over 50 years ago.


12 posted on 01/09/2012 3:19:15 PM PST by AlexW
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To: Dysart

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!”


13 posted on 01/09/2012 3:19:23 PM PST by Sarah Barracuda
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To: Dysart

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.


14 posted on 01/09/2012 3:19:34 PM PST by DannyTN
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Obamas America


Click The Pic

Support Activist Free Republic

15 posted on 01/09/2012 3:19:39 PM PST by DJ MacWoW (America! The wolves are here! What will you do?)
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To: Dysart
"Occupy Hostess! Save the Ding Dongs and the Sno-Balls for m...uh, the 99%! Ho-Hos are a human riiiiiight!"


16 posted on 01/09/2012 3:19:58 PM PST by LostInBayport (When there are more people riding in the cart than there are pulling it, the cart stops moving...)
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To: Dysart
I blame Little Debbie.

I've never trusted her...

17 posted on 01/09/2012 3:20:33 PM PST by Max in Utah (A nation can survive its fools, and even the ambitious. But it cannot survive treason from within.)
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To: Dysart
this is truly sad... can the end of the world be far behind???
18 posted on 01/09/2012 3:20:51 PM PST by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: AlexW

Go get yourself a good recipe for gobs and start baking


19 posted on 01/09/2012 3:21:16 PM PST by silverleaf (Common sense is not so common- Voltaire)
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To: Dysart
America...in its better days:


20 posted on 01/09/2012 3:21:16 PM PST by Azzurri
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