Hostess Brands files for Chapter 11 bankruptcy protection
Posted January 11, 2012 11:58 am.
This article is more than 5 years old.
Hostess Brands Inc., the maker of Twinkies and Ding Dongs, said Wednesday it has filed for bankruptcy protection for a second time, and cited in court its declining financial performance, massive debt levels and the costs associated with its pension and health benefits plans.
The Chapter 11 filing in New York comes more than two years after its predecessor known as Interstate Bakeries Corp. emerged from bankruptcy proceedings in February 2009 with private equity firm Ripplewood Holdings and other lenders at the helm.
The Irving, Tex.-based bakery company, which operates in 49 American states and had about $860 million in debt, said it will be able to run its business as it restructures because it secured financing of $75-million US from its lenders.
“We remain hopeful that we can reach an agreement that will allow us to amend our labor contracts so that we can emerge from Chapter 11 as a highly competitive company that provides secure jobs for our employees,” chief executive officer Brian Driscoll said in a statement.
The privately-held company, which operates 36 bakeries and employs 19,000 people, had assets totalling $981.6 million and liabilities of $1.43 billion as of Dec.10, 2011.
With files from Reuters
