Twinkies manufacturer files for bankruptcy
One of the America’s biggest baking companies, Hostess Brands, which owns the iconic Twinkies brand, has filed for bankruptcy.
The Texas-based company operates 36 bakeries in the United States and employs up to 19,000 people.
According to reports, the company owes US$944 million to the U.S. Bakery & Confectionary Union & Industry Pension Fund alone.
Hostess Brands announced yesterday (12 January 2012) that it has filed voluntary petitions for reorganisation under Chapter 11 of the U.S. Bankruptcy Code.
A statement released yesterday by Hostess Brands said the company will continue operating its bakeries, outlet stores and distribution centres and delivering its products to its customers across the United States.
Hostess Brands’ President and Chief Executive Officer Brian Driscoll said, “We have engaged in good-faith bargaining with our partners for many months. We remain hopeful that we can reach an agreement that will allow us to amend our labour contracts so that we can emerge from Chapter 11 as a highly competitive company that provides secure jobs for our employees.”