Twinkies Maker Hostess Files For Bankruptcy
The maker of snack cakes including Twinkies, Ho Hos, and DingDongs has filed for Chapter 11 bankruptcy protection. But a company spokesperson has assured that production of the famous cream-filled treat will continue as usual for now.
“Throughout the proceeding, we’re going to operate business as normal,” said Hostess spokesman Erik Halvorson, according to CNNMoney. “They’ll keep making Twinkies.”
Hostess declared bankruptcy for the first time in 2004, and didn’t emerge until 2009, an unusually long time for the situation. Even more unusual is the second Chapter 11 filing (or “Chapter 22,” in some legal circles) so soon after.
Hostess blames unions and pension plans for their latest troubles, but many critics point the finger at the company’s “failure to freshen up a stale product line and keep up with consumers’ changing tastes”, as the Washington Post puts it.
But even if Hostess doesn’t survive this crisis, there’s a good chance that Twinkies will. Defunct companies can still sell of their intellectual property, like a brand name; and as CNN reports elsewhere, potential buyers were already looking in to the possible value of the iconic snack titles:
Buyers have made multi-million dollar bets on brand names like Polaroid, Sharper Image and even Borders that continue to resonate with consumers even after the parent company has liquidated.
What do you think? Will America ever be without Twinkies?
[Image via John D. Moore]
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[...] and Grain Millers International Union (BCTGM). The BCTGM countered that Hostess had been mismanaged, filing for bankruptcy again this year just after emerging from another long bankruptcy in 2009, and increasing executive salaries by as [...]