The New York Times reports that Hostess Brands — the company that manufactures Ding Dongs, Twinkies, and Hostess Cupcakes — has filed for Chapter 11 bankruptcy.
The privately held company, based in Irving, Texas (also the home of Frito-Lay), is groaning under nearly $900 million in debt, much of it held by labor unions, pension funds, and individuals. There are an estimated 100,000 creditors in total.
The company, then known as Interstate Bakeries Corporation, underwent a similar bankruptcy reorganization in 2004, emerging from the process in 2009. But don’t worry, the company assures us it will continue making its tasty treats during this reorganization. Other company products you may be familiar with include Wonder Bread, Nature’s Pride Bread, and Drake’s Cakes (which always seemed like low-rent Hostess).
In the last fiscal year, the 82-year-old company posted a $341 million loss. One of the problems with the brand may be its reputation for unhealthiness. Can we expect a whole-wheat Twinkie with a soy cream filling in the future?
If you want to help out, buy a Twinkie. Actually, you’ll have to buy at least two.