SillyGirl
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This never would have happened if I hadn't lost weight. :sorry::sorry:
Hostess Brands may file for Chapter 11 -- again
Twinkie maker is in the fight for its life.
By Jonathan Berr on Tue, Jan 10, 2012
Hostess Brands, maker of Twinkies, Ho-Hos and Ding Dongs, is on the verge of filing for bankruptcy protection for the second time since 2004 in the face of mounting debt and skyrocketing prices for ingredients, according to the Wall Street Journal.
As the Journal noted, times are tough for the privately held Irving, Tex. baker, which had been held up as a model of corporate restructuring since emerging from its first bankruptcy in 2009. Not only does the maker of Wonder Bread carry $860 million in debt, it owes "more than $50 million to vendors, which have been demanding payments on shortened time frames because of Hostess's financial condition," the paper said.
Above all, Hostess wasn't able to change with the times. Its whole grain bread, "Nature's Pride," was a flop and its other products are being hurt by the growing awareness of the obesity epidemic sweeping the country, especially among children. That trend is particularly evident with respect to its signature product -- Twinkies.
Twinkie inventor James Dewar swore by the cream-filled cake he invented in 1930 and ate at least two packets of them a week, before passing away in 1985 at the age of 88. "Some people say Twinkies are the quintessential junk food, but I believe in the things," the Los Angeles Times quoted him as saying. These days, many consumers don't share Dewar's heart-felt dedication to what were once dubbed "the cream puff of the proletariat." Twinkies have an "F" grade from the nutrition website Calorie Count because they pack a whopping 150 calories. That means that these snacks have evolved from a daily treat in kids' lunches to an occasional food. Little wonder that Twinkie sales are flat.
The news for Hostess may go from bad to worse. According to the Journal, the company will file a "Chapter 22" bankruptcy, since it already got protection from creditors once before. "One of Hostess's challenges will be to avoid liquidation, the fate of some other companies seeking bankruptcy protection a second time," it says.
Hostess Brands may file for Chapter 11 -- again
Twinkie maker is in the fight for its life.
By Jonathan Berr on Tue, Jan 10, 2012
As the Journal noted, times are tough for the privately held Irving, Tex. baker, which had been held up as a model of corporate restructuring since emerging from its first bankruptcy in 2009. Not only does the maker of Wonder Bread carry $860 million in debt, it owes "more than $50 million to vendors, which have been demanding payments on shortened time frames because of Hostess's financial condition," the paper said.
Above all, Hostess wasn't able to change with the times. Its whole grain bread, "Nature's Pride," was a flop and its other products are being hurt by the growing awareness of the obesity epidemic sweeping the country, especially among children. That trend is particularly evident with respect to its signature product -- Twinkies.
Twinkie inventor James Dewar swore by the cream-filled cake he invented in 1930 and ate at least two packets of them a week, before passing away in 1985 at the age of 88. "Some people say Twinkies are the quintessential junk food, but I believe in the things," the Los Angeles Times quoted him as saying. These days, many consumers don't share Dewar's heart-felt dedication to what were once dubbed "the cream puff of the proletariat." Twinkies have an "F" grade from the nutrition website Calorie Count because they pack a whopping 150 calories. That means that these snacks have evolved from a daily treat in kids' lunches to an occasional food. Little wonder that Twinkie sales are flat.
The news for Hostess may go from bad to worse. According to the Journal, the company will file a "Chapter 22" bankruptcy, since it already got protection from creditors once before. "One of Hostess's challenges will be to avoid liquidation, the fate of some other companies seeking bankruptcy protection a second time," it says.
