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 ...
As usual, sick SOBs in the unions are killing good corporations that have legacies in this country for their fantastic products. Unions need to be cleansed from this nation.
“Go get yourself a good recipe for gobs and start baking”
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I was being facetious.
I have not had any Hostess products in many years.
More economic fringe benefits as a result of the Obama Hopey Changy Marxist policies. Lets go after Milk next!
Hate to break it to everyone, but Hostess also now owns Drakes - which means the possibility of no more Yodels, Ring-Dings, Devil Dogs and Funny Bones.
To my best recollection, I have never eaten a twinkie. I am absolutely positive I have never eaten a ho ho
I will consider both tomorrow so as to not have missed the experience
“californica ran a few of the bread bakers out of state because bread making causes global warming” In californica Bimbo brand (mex) is takin over.
We had a kid at school we always called Twinkie the Kid. He didn’t like it.
If it wasn’t for all of our taxpayer money going into it, you could have added GM to that list.
Mmm, Yellow Dye No. 5.
Part of the culture, for good or bad. Hey, this is change - believe it.
They did this to Marie Calendar in California ~ which used to set the standard on chicken pot pie. Their products are now lifeless. Might as well be made from rough cornmeal for all that (then I could eat them).
You don't want to go out to eat in California anymore unless it's for uncooked beef.
That's what Dan White did, a third of a century ago, supposedly after eating too many Twinkies. Capped Harvey Milk and San Fran Mayor Moscone both and only got seven years, based on the supposed effect of Hostess products on his mind.
And her parter in crime, "Dolly Madison". I don't *think* Sara Lee is on the "Persons of Interest" list (nobody doesn't like *her*).
My fault. Never eat the stuff.
But check out her Ho Ho's
(/Zombieland reference)
Sure you can ~ and if you are a diabetic and used to eating foods with low or no sugar, they will taste just as sweet.
It’s those damn hipsters again!
thanks for the link! Hey did you read the real reason they want to file bankruptcy towards the end of the article?
The price of wheat over the last few years has definitely broken the back of many bakers. The move toward gluten free products has not helped them ~ you really don't have any real substitute for wheat and wheat byproducts when it comes to baked goods.
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