Good news, arteries: Hostess files for Chapter 11
Quick! Grab those Twinkies while you still can!
News of snack-making brand Hostess filing for Chapter 11 bankruptcy protection is rocking the empty calorie-loving community today.
A statement released by the company said the current cost structure “is not competitive, primarily due to legacy pension and medical benefit obligations and restrictive work rules.”
“We have engaged in good-faith bargaining with our labor partners for many months,” said CEO Brian Driscoll. “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.”
The company announced $75 million in DIP financing that will help continue operations throughout the reorganization process and said it “does not anticipate” any disruptions to its production of delicious treats.
Headquartered in Irving, Texas, Hostess employs 20,000 people in 30 bakeries, according to its website.
The company, known for favorites like Twinkies, Ho Ho’s and Sno Balls, has been in operation since the late 1800′s. Its other brands include Wonder, Nature’s Pride and Drake’s.