Ah the pitfalls of buying what you know. You might miss the fact that the product you love is not as popular as it used to be. No worries, we now know that Twinkies will last years past the end of their parent company baker. One day someone will open a time capsule, take a bite and start the business all over again.
Twinkie-Maker Hostess Brands Files for Bankruptcy Protection
Jan. 11 (Bloomberg) — Hostess Brands Inc., the maker of Twinkies snack cakes and Wonder bread, fell back into bankruptcy about three years after completing an earlier restructuring.
The Irving, Texas-based baker ended an earlier trip through bankruptcy court in February 2009 when buyout firm Ripplewood Holdings LLC and lenders took control of Interstate Bakeries Corp., which was renamed Hostess Brands.
IBC Sales Corp., also known as Interstate Bakeries Corp., filed its 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.
Interstate Bakeries was created through the merger of Schulze Baking Co. and Western Bakeries Ltd. in 1937, and grew by acquiring other baking companies, according to court documents filed in the first bankruptcy case. It acquired its biggest rival, Continental Baking Co., in 1995 for $330 million, according to the company’s website.
The company’s baked goods include Hostess CupCakes, Ding Dongs, Drake’s Devil Dogs, and Nature’s Pride breads. It employs about 20,000 people at bakeries, distribution centers and outlet stores across the country, according to the website.
In September 2004, burdened with declining sales combined with high labor and ingredient costs, Interstate filed for bankruptcy in Kansas City, Missouri. During the case, it closed facilities, cut delivery routes and eliminated jobs.
The company exited bankruptcy in February 2009 with a restructuring plan backed by New York-based Ripplewood and lenders including Silver Point Capital LP, according to court documents. Union workers also agreed to concessions to cut labor costs.
Ripplewood invested $130 million for stock and convertible notes. Lenders also received shares in the company, according to a description of the bankruptcy plan.
To contact the reporters on this story: David McLaughlin in New York at dmclaughlin9 Steven Church Wilmington, Delaware, at schurch .
To contact the editor responsible for this story: John Pickering at jpickering
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