Hostess, say it isn't so

Jan. 11, 2012

Privately held Irving, Texas-based Hostess Brands, the maker of Twinkies snack cakes, Wonder bread, Ding Dongs, Drake’s Devil Dogs, and Nature’s Pride breads, f

Privately held Irving, Texas-based Hostess Brands, the maker of Twinkies snack cakes, Wonder bread, Ding Dongs, Drake’s Devil Dogs, and Nature’s Pride breads, fell back into bankruptcy about three years after completing an earlier restructuring in February 2009. It filed a Chapter 11 petition in U.S. Bankruptcy Court in Manhattan, listing assets of as much as $1 billion and debt of more than $1 billion, reports Bloomberg. Slowing sales, higher labor costs and rising prices for sugar, flour and other ingredients are cited. Annual sales are about $2 billion.

 

In September 2004, burdened with declining sales combined with high labor and ingredient costs, Interstate filed for bankruptcy in Kansas City, Missouri, it closed facilities, cut delivery routes and eliminated jobs.  It was acquired by buyout firm Ripplewood Holdings LLC and lenders including Silver Point Capital LP took control of Interstate Bakeries Corp., which was renamed Hostess Brands, which employs about 20,000 people at bakeries, distribution centers and outlet stores across the country. 

 

The company will receive a commitment for $75 million in debtor-in-possession financing from a group of existing first-lien lenders led by Silver Point Capital L.P. The financing is expected to help Hostess continue normal business while undergoing restructuring. The company said it will continue operating its bakeries, outlet stores and distribution centers and delivering its products to customers.

 

“Hostess has some of our industry’s most powerful and resilient brands,” said Brian Driscoll, president and CEO. “With generations of loyal consumers, numerous iconic products and a talented and experienced workforce, Hostess Brands has tremendous inherent strengths to build upon.”

 

Amen to that.

Sponsored Recommendations

Discover Your Savings Potential with the Kaeser Toolbox

Discover your compressed air station savings potential today with our toolbox full of calculators that will help you determine how you can optimize your system!

Revolutionizing Healthcare: The Impact of Digitalization in Biopharma Innovation

Biopharma enables an entirely new level of innovation that’s simply not possible in conventional drug development. It’s an approach that can fundamentally change the way healthcare...

Navigating the Automotive Industry's Electric Future

The automotive industry is at a turning point. Bloomberg estimates that by 2040, 54% of new vehicle sales will be electric. And by 2030, we’re looking at 100% of passenger vehicles...

Unified Process Control Brings Operational Clarity

Inland Empire Utilities Agency replaces its SCADA enterprise system with the PlantPAx Distributed Control System and reduces complexity for operators