Hostess Brands Files For Bankruptcy Protection


Salon Staff
January 11, 2012 5:54PM (UTC)

NEW YORK (AP) — Hostess Brands Inc., the maker of Twinkies and Wonder Bread, is filing for bankruptcy protection, blaming troubles with its pension and medical benefits obligations, increased competition and tough economic conditions.

The Chapter 11 filing on Wednesday comes just two years after a predecessor company emerged from bankruptcy proceedings.

Advertisement:

The privately held Irving, Texas bakery company says it will be able to maintain routine operations thanks to a $75 million financing commitment from a group of lenders.

Reports had surfaced earlier in the week that the company was planning to make such a filing.

Hostess said that it will look to restructure into a "strong, competitive" company. It will continue to run bakeries, outlet stores and distribution centers and deliver its goods during the process.

Hostess operates in 49 states.


Salon Staff

MORE FROM Salon Staff

BROWSE SALON.COM
COMPLETELY AD FREE,
FOR THE NEXT HOUR

Read Now, Pay Later - no upfront
registration for 1-Hour Access

Click Here
7-Day Access and Monthly
Subscriptions also available
No tracking or personal data collection
beyond name and email address

•••





Fearless journalism
in your inbox every day

Sign up for our free newsletter

• • •