Twinkie-Maker Hostess Files for Bankruptcy

By David McLaughlin

Jan. 11 (Bloomberg) -- Hostess Brands Inc., the maker of Twinkies snack cakes and Wonder bread, fell back into bankruptcy less than three years after completing an earlier restructuring.

Fear not...their crap has enough preservatives to keep us in Twinkies til the year 2020.

The baker ended an earlier trip through bankruptcy court in February 2009.  Lenders took control of Interstate Bakeries Corp., which was renamed Hostess Brands.

Hostess in a statement today blamed the latest bankruptcy on a weak economy and costs tied to pension- and medical-benefit obligations. The Irving, Texas-based baker intends to withdraw from pension plans and modify collective-bargaining agreements with unions, according to court documents.

Get it? It’s the generous pension and medical benefits obligations what did us in. And collective-bargaining agreements? Oy, don’t even mention.


"This company has tremendous potential if we can remove barriers to success," Chief Executive Officer Brian Driscoll said in the statement.

Hmm, wonder how much dough Driscoll sucks from the company.


Hostess listed assets of as much as $1 billion and liabilities of more than $1 billion in its bankruptcy petition.

Yep. That’ll do it. $1 billion in assets minus $1 billion in liabilities equals bankruptcy.


The Chapter 11 case was assigned to U.S. Bankruptcy Judge Robert Drain in White Plains, New York.

Judge Drain? Oh, that’s too easy.

Interstate Bakeries was created through the merger of Schulze Baking Co. and Western Bakeries Ltd. in 1937, and grew by acquiring other 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 products include Hostess Twinkies.

The company's products include Hostess CupCakes, Ding Dongs, Drake's Devil Dogs and Nature's Pride breads. It employs about 19,000 people, of which 83 percent are union members, according to court papers.

It’s those evil unions what did it.

The majority are members of the International Brotherhood of Teamsters or the Bakery, Confectionery, Tobacco Workers & Grain Millers International Union, the company said.

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 plants, 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.

Ripplewood invested $130 million for stock and convertible notes. Silver Point and other lenders also received shares in the company, according to court papers.

Wow. Ripplewood has some very expensive wallpaper. Hope they enjoy. I don't mean to sound callous, it's just that we seem to be in a race to the bottom in this country.