Hostess Brands Headed Towards Bankruptcy (Again)
Hostess – the maker of such sweet-treats as Twinkies – is headed towards bankruptcy again. This time, the forecast for recovery isn’t so good.
Hostess Brands, the maker of Twinkies and Wonder Bread, filed today for bankruptcy protection and blamed at least part of its difficulties on outmoded union agreements and work rules.
Pension costs are the elephant in the room this time around and a lot of Wall Street financial experts are predicting that Hostess won’t see the sort of recovery that they did the first time they filed bankruptcy – back in 2004. That filing took until 2009 for a recovery.