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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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To: Dysart
When Twinkies are no longer profitable... that fagot kenyan dictator has got to go! I wonder how many Hostess union employees voted for that usurping muslim.

LLS

81 posted on 01/09/2012 4:35:41 PM PST by LibLieSlayer (obamao... ...the bastard son of a hippie slut and a drunk communist British Kenyan!)
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To: Dysart



82 posted on 01/09/2012 4:36:16 PM PST by Responsibility2nd (NO LIBS! This means liberals AND libertarians (same thing) NO LIBS!)
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To: cicero2k
“I think the Hostess demise is an indicator of demographics and companies that fail to keep up.

The snack food eating demo is more hip and more urban. “

Another great idea here on FR! Hostess could make ethic tweaks to their products!!
They could come out with a Hip Hop Ho Ho for example. Or salsa flavored Twinkies (probably not a good idea).

On a serious note however; look what Lays has done to the once mundane potato chip. They have some pretty good flavors available now that were once available just in a higher end chip.

83 posted on 01/09/2012 4:36:51 PM PST by HereInTheHeartland (I love how the FR spellchecker doesn't recognize the word "Obama")
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To: Dysart
True. Always something shady about her and things kinda fell apart for her after she moved to the Dallas area Thanks I really needed a good laugh! LMAO!
84 posted on 01/09/2012 4:37:25 PM PST by ColdOne (I miss my poochie... Tasha 2000~3/14/11)
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To: muawiyah; reaganaut; DannyTN
"Hostess changed their formulas a few years back, I’ve had both Twinkies and cupcakes and they are no where near as good as they used to be. Its the New Coke but worse."

They were made with beef tallow prior to trans fats. THOSE were the best.

85 posted on 01/09/2012 4:38:36 PM PST by oprahstheantichrist (The MSM is a demonic stronghold, PLEASE pray accordingly - 2 Corinthians 10:3-5)
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To: All

86 posted on 01/09/2012 4:39:06 PM PST by Signalman
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To: Smokin' Joe
Man... just give Woody a Twinkie... he'll chill.

LLS

87 posted on 01/09/2012 4:45:00 PM PST by LibLieSlayer (obamao... ...the bastard son of a hippie slut and a drunk communist British Kenyan!)
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To: Dysart
This thread needs some music. As the Ding-Dongs die.

http://www.youtube.com/watch?v=Qz40CLVsxpw&feature=related

88 posted on 01/09/2012 4:46:06 PM PST by Cheburashka (If life hands you lemons, government regulations will prevent you from making lemonade.)
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To: AlexW
What???? No more Hostess cupcakes?

Mt thought exactly - the only product in that brand I love.

89 posted on 01/09/2012 4:55:54 PM PST by NewHampshireDuo
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To: Dysart

Convenience Store Clerk: [Powell with an armload of Twinkies] I thought you guys just ate doughnuts.
Sergeant Al Powell: Heh. They’re for my wife.
Convenience Store Clerk: [sarcastically] Yeah.
Sergeant Al Powell: She’s pregnant.
Convenience Store Clerk: Yeah.
Sergeant Al Powell: Bag it.
Convenience Store Clerk: Big time.


90 posted on 01/09/2012 5:17:59 PM PST by moovova (Report my sarcastic, fear-mongering, hate-filled lies to www.AttackWatch.com by clicking HERE.)
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To: DannyTN

It’s because they’re shipping them from a further distance now.

They have shut down MANY of their bakeries and turned them into trucking distribution points.


91 posted on 01/09/2012 5:19:17 PM PST by 2111USMC (Not a hard man to track. Leaves dead men wherever he goes.)
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To: moovova

01:17:49 Oh, God...
01:17:53 Roy? Roy, you all right?
01:17:57 Just trying to fire down a 1,000-year-old Twinkie.
01:18:00 What do they put in these things, anyway?

92 posted on 01/09/2012 5:20:53 PM PST by moovova (Report my sarcastic, fear-mongering, hate-filled lies to www.AttackWatch.com by clicking HERE.)
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To: Azzurri

Louisiana Lighting!


93 posted on 01/09/2012 5:31:45 PM PST by angcat (NEW YORK YANKEES!)
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To: al baby

Why?
Will my computer get fat?.


94 posted on 01/09/2012 6:21:35 PM PST by Red Badger (If you are unemployed long enough, you are no longer unemployed.)
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To: Dysart

What? Hostess/Twinkies is bankrupt? Judging by the girth of the average American, I would think Twinkies & Ding Dongs were selling at a record pace!


95 posted on 01/09/2012 6:22:48 PM PST by Minutemen ("It's a Religion of Peace")
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To: muawiyah
No Hostess was dead in TN 20 years ago before anyone was complaining about trans fats. And they are currently still using transfats.

Post 85 is more likely, that the switch to transfats killed the product. Not a switch away from them.

96 posted on 01/10/2012 8:36:49 AM PST by DannyTN
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To: reaganaut

Yep, they should never have messed with the original formula.


97 posted on 01/11/2012 8:56:00 AM PST by Altariel ("Curse your sudden but inevitable betrayal!")
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To: Dysart

To my knowledge I have never eaten a Twinkie, a Ho ho or a Ding Dong

I was out this morning and bought a pack of Twinkies and of Dingdongs.

It would be a pity for them to disappear and I did not know what they were


98 posted on 01/11/2012 9:03:46 AM PST by bert (K.E. N.P. +12 ..... Crucifixion is coming)
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To: Dysart

L

99 posted on 01/11/2012 9:07:51 AM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: bert
I was out this morning and bought a pack of Twinkies and of Dingdongs.

Ah, the breakfast of champions. Consider washing them down with Mountain Dew. One can never have too much sugar. 100 for the win.

100 posted on 01/11/2012 9:35:07 AM PST by Dysart (#Changeitback)
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