Hostess Brands Inc., made famous by those golden cream filled treats, is once again preparing to file for Chapter 11 bankruptcy protection later this week, according to a The Wall Street Journal report, which cited multiple sources familiar with the company.
This would be second time that Ripplewood Holdings, which owns Hostess, filed for a court restructuring. The company had attempted to get its finances together when it first filed for bankruptcy back in 2004.
According to reports the Irving, Texas, based Hostess has arranged for $75 million in debtor-in-possession financing to keep it solvent during bankruptcy proceedings, as reported by The Wall Street Journal.
The company has tried to move forward even with a diminished cash flow and minimal liquid assets. The company received $40 million from Ripplewood Holdings while Monarch Alternative Capital, Silver Point Capital and others loaned the company $20 million at the end of last year, as reported by The Wall Street Journal.
Once in bankruptcy court, it is reported that the maker of Twinkies and Wonder Bread will try to reduce debt and renegotiate the terms of their labor contracts. Hostess currently carries over $860 million in debt, according to Reuters.
Those familiar with the company have attributed the last court filing on the increasing costs of flour, sugar and other baking ingredients as well as a massive amount of debt.
Can this be true?! No more Twinkies, No more Cupcakes, and No more Ding-Dongs!!!?
What would you do if this were your company? Famous for selling sweets to millions!
Please write in complete sentences and don't forget to use spell check!
if there is no more sweets then im pretty sure that everyone will have something to say. i think they need to do their best to do whatever it takes to make it right.
ReplyDeleteI would not care because I do not like Twinkies. It would not bother me at all. But it might bother Tom.
ReplyDeleteI Dont Eat Those Items So It Dont Matter To Me , But Mr.Johnson Said , They Make To Much Money To Shut Down The Company .
ReplyDeleteI don't eat twinkies. However, I would do what ever I could do not to let down millions.
ReplyDeleteTo me I wouldnt but then I would care about the Twinkies and Cupcakes, but the Ding-Dong stuff... you can miss me with all 'at.
ReplyDeleteOkay that is money that the compnay is losing. I would be so upset, but I agree with Mr. Jhonson.
ReplyDeleteI think it probably should have gone bankrupt years ago and it going to help people to any ways the other companys already know how to make them so they dont really need it
ReplyDeletedont think of it as letting them down just cutting off the ballast
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