Hostess Brands Preparing for Chapter 11 Filing

[Snake Alchemist]

Hostess Brands Inc. is preparing to file for Chapter 11 bankruptcy protection as soon as this week, said people familiar with the matter, a move that would mark the second significant court restructuring for the Twinkie and Wonder Bread baker in the past several years.

The privately held Irving, Texas, company, which employs roughly 19,000 people and carries more than $860 million in debt, has been facing a cash squeeze amid high labor costs and rising prices for sugar, flour and other ingredients, according to people familiar with the matter. Those costs together have proved higher than the company's roughly $2.5 billion in annual sales, creating losses and cash shortfalls, they said.

Hostess also currently owes more than $50 million to vendors, which have been demanding payments on shortened timeframes after delivering goods because of Hostess's financial condition, one of the people said.

Hostess's filing would mark what's known as a "Chapter 22" in restructuring circles, since the company had already sought bankruptcy protection once before. Hostess, before called Interstate Bakeries Corp., slashed debt and costs during a four-year stint in bankruptcy court that began in 2004. The company has struggled since emerging from bankruptcy proceedings in February 2009.

http://online.wsj.com/article/SB10001424052970204124204577151211961572458.html

This almost seems impossible

[FreakinDJ]

1. Damm - I'm going to miss those Sugar Pies

[MaineDem]

15. Don't worry; they'll last forever.

I don't think they ever rot.

[McCamy Taylor]

33. They don't last forever now that they have to use no trans fats.

Rancid Twinkies are the worst!

[HopeHoops]

2. Do they even make anything moderately nutritional?

We've said for decades - "Wonder Bread - it's a wonder it's bread". And Twinkies and HoHos aren't exactly health food, although Congress will probably declare them to be vegetables.

[ChairmanAgnostic]

4. Only the house.

And, no, they make nothing worth eating.

Hell, I remember how I looked at the shit they made in my yute, wondering why they would make crap like that, and wondering how they could stay in business.
And that was 40 years ago.

[HopeHoops]

9. Yeah, but I still liked Twinkies! And...

I had a really rude theory on how they were filled that isn't fit for publication.

[Art_from_Ark]

17. I remember Captain Kangaroo plugging Wonder Bread back in the '60s

"Wonder Bread helps build strong bodies 12 ways"

[reACTIONary]

38. First thing I thought when I saw the words "Wonder Bread"...

...can you still remember any of the cigarette slogans?

"You can take Salem out of the country, but you can't take the country out of Salem"

[MaineDem]

42. Lucky Strike Means Fine Tobacco

LSMFT. I think it was written on each pack.

[Art_from_Ark]

92. Kent also claimed that it had "fine tobacco"

"More taste" as well.

"More taste, fine tobacco, doo-doo-doody-doo-doo"

My uncle smoked Kents. After smelling the smoke, I couldn't imagine how they could have any "taste"

[Art_from_Ark]

43. "Winston tastes good, like a cigarette should"

Not "LIKE"--- AS!

"You've come a long way, baby, to get where you've got to today. You've got your own cigarette now, baby. You've come a long, long way" (Virginia Slims)

"To a Frenchman, it's the Eiffel Tower
To a Dutchman, it's a pretty flower
To an Indian (from India), it's a monument
To a smoker, it's a Kent"

"I'd walk a mile for a Camel"

"Come to where the flavor is. Come to Marlboro Country"

"Bel-Air tastes light, 'cause the menthol's right"

"Oh, the disadvantages of the new Benson & Hedges 100s"

[annabanana]

82. Ca-a-a-all for Philip Moe-rris!

Actually it was my Dad who used to holler this for fun..

[MaineDem]

44. And there was one about being a silly millimeter longer

Can't remember which one.

[Art_from_Ark]

47. It was actually called "101" (One-o-one)

One millimeter longer (than Benson & Hedges 100's)

[Art_from_Ark]

48. "Us Tareyton smokers would rather fight... than switch"

The ads/commercials always featured someone with a black eye. They always irritated the heck out of me.

[era veteran]

59. Lucky Strike red has gone to war

"Phone call for Phillip Morris"

[olddad56]

80. I remember that one..

Where the bellhop is in the hotel lobby yelling 'Call For Philllippp Morrriss'.

[KansDem]

70. I was always partial to "Take a breath...it's Springtime!"

Salem again...



Yeah, "Springtime" Only if you're living in a tailpipe...

[olddad56]

81. My father used to switch to Salems if he had a cold, like they were medicine or something.

[olddad56]

79. "Over 30 years of tobacco research proves that Chesterfield is the best cigarette."

I have these old Dragnet episodes that were converted to VHS. Almost all of the commericals are for Chesterfield cigarettes. Many with George Fenneman (who wouldn't believe him) expalining why Chesterfields are the best cigarettes. My favorite is the one I posted in the heading. Other good ones are of Doctors and Airline pilots explaining why Chesterfields are the best.

My son and I like the commericals better than the show.

[KansDem]

71. Were the "12 ways" ever disclosed?

I always wondered how the "12 ways" built stronger bodies...

[reACTIONary]

91. Yes! I distinctly remember...

...a big chart or poster with 12 points for each "way". I remember a "host" (cap't kangaroo? could be) going down the list naming each one. I think the host might have flipped or slid a panel to reveal each one. I believe they were 12 vitamins and minerals, but I can't remember for sure.

[Taverner]

31. Wonder Bread is surprisingly nutritional

[Historic NY]

39. Yes it was, imagine sliced bread. Who knew it was possible.

[Wilms]

3. I mis-read the title.

I thought it said "Hostess Brands Preparing for Chapter 11 Filling"

[jberryhill]

7. Mmmmmm.... Chapter 11 Filling

[tanyev]

11. Sticky, with a bitter aftertaste.

[msongs]

5. mabye Bain Capital and Mitt Rmoney can bail them out lol nt

[Klukie]

6. You know I was wondering how they were able to put their products on sale for bogo every other week

makes sense now.

[rug]

8. What is Twinkie's defense?

[NNadir]

24. That Dan White's imprisonment had a bad effect on sales. n/t

[derby378]

89. MILK!!!

I woke up, can't wait to eat
Got my cereal, boy was I beat
Opened up my fridge and to my dismay
There was no more Milk, Dan White's gonna pay

I want some Milk
My coffee grows cold
I want some Milk
I should've been told

I wish I had some goddamn Milk
Politics just ain't the same
I wish I had some goddamn Milk
Too bad the policeman never came

I can't go out to the store
I'll just wait till Dan White buys more
I'll just fight 'til Prop 8 is dead
8-hit combo on its fuckin' head

I want some Milk
My coffee grows cold
I want some Milk
I should've been told

I wish I had some goddamn Milk
Politics just ain't the same
I wish I had some goddamn Milk
Too bad the policeman never came

I want some Milk
My coffee grows cold
I want some Milk
I should've been told

[Populist_Prole]

10. I wonder what "amid high labor costs" means?

Bust the unions? Nawww!

[cstanleytech]

12. Do "NOT" panic people, even if they go out of business the twinkies they made now will

taste the same one year from now or even 20000 years from now due to the preservatives.

[derby378]

13. Noooooooooooooo!

Sorry, but every once in a while I gotta get my Ding Dong fix on. Not to mention the Twinkies.

[Marie Marie]

45. Ditto

Every now and then, a girl just needs a Funny Bone.

[SaintPete]

54. I'm a Ho Hos fan

a real guilty pleasure

[leveymg]

62. Ho-Hos are Violence. Haven't you heard?

Naughty, naughty.

[bitchkitty]

14. OMFG! Twinkies are in trouble!!! n/t

[newblewtoo]

16. Great book for those interested

Twinkie Deconstructed

http://www.amazon.com/Twinkie-Deconstructed-Ingredients-Processed-Manipulated/dp/1594630186

You may never look at the food you eat the same way again.

[sarcasmo]

18. Tallahassee from Zombieland is gonna be pissed.

[Ikonoklast]

46. It's not the taste, it's the texture.

[BlueMTexpat]

19. Their products have a longer half-life than depleted uranium, so

bankruptcy may not be The End.

[EC]

20. Well, they cheap down the ingredients

so everything tastes like crap, I won't miss them. Off brand Zingers taste better anyway.

[Sherman A1]

21. Again?

This is about screwing their workers on pension contributions & breaking the unions.

They filed under Interstate Brands & changed the company name so they can now file again.

[Snake Alchemist]

23. They have borrowed quite a bit of money at this point.

I just can't believe that their brands aren't selling better.

[Sherman A1]

26. They are selling just fine

and working their delivery guys into the ground.

[Snake Alchemist]

27. From the article they are considerably in debt.

Close to a billion dollars. I think Tastykake went out of business a few years ago.

[Sherman A1]

29. One might consider

perhaps that the debt may have come from poor management decisions.

[Snake Alchemist]

30. No doubt that is part of it.

I'm sure this is true as well. Never even heard of Nature's pride, but I bake all my own bread.


Sales of Hostess's signature Twinkies have recently declined a bit while the overall bakery snacks category has been about flat. Nearly 36 million packages of Twinkies were sold in the year ended Dec. 25, down almost 2% from a year earlier, according to data from SymphonyIRI Group, a Chicago-based market-research firm. The data captures sales from supermarkets, drugstores, mass-market retailers and convenience stores, but exclude sales from Wal-Mart Stores Inc. and club stores.

Hostess also has had trouble attracting consumers who have migrated away from white bread to whole grains and other healthier foods. Hostess released a whole-grain bread called Nature's Pride, but it hasn't sold well compared with some rivals amid a small presence on shelves, according to Mitchell Pinheiro, a Janney Montgomery Scott analyst. Still, Nature's Pride's overall sales have ticked up, increasing 12.3% over the past year or so, said a Hostess spokesman.

[SharonAnn]

51. Debt may have come from exorbitant management salaries and bonuses.

[OnyxCollie]

36. Tastykake is still in business.

I saw their products at the store yesterday.

[madrchsod]

25. ya ...several years ago they shut the doors without any notice to the union.

around here 5 or so drivers and store personal were locked out.

[justgamma]

22. There goes the Twinkie Defense. n/t

[greiner3]

28. Archie Bunker;

Will have one more thing to rant about. Well, maybe they will make a revival or something.

[Maine-ah]

32. Biddeford (Hostess) bakery hit with OSHA fines

The U.S. Department of Labor’s Occupational Safety and Health Administration has proposed fines of $104,700 for alleged workplace safety violations at a Biddeford bakery.

In a Monday release, OSHA detailed the allegations against Interstate Brands, doing business as Hostess Brands. The problems include eight “serious” and two repeat violations, OSHA charged.

“Our inspection identified mechanical, electrical, fall and exit hazards, including some similar to those cited at other Interstate Brands facilities,” said William Coffin, OSHA’s area director for Maine. “Left uncorrected, these violations expose workers to the hazards of electrocution, lacerations, amputation, falls, being caught in operating or unexpectedly activated machinery and being unable to exit the workplace swiftly in the event of a fire or other emergency.”

According to the release, OSHA inspectors reported missing guardrails that would prevent workers from falling into hoppers; a locked emergency exit door and an exit route blocked by product racks; unguarded moving machine parts on a conveyor belt, band saw blade, drill press and other equipment; a lack of documented procedures to prevent the unintended activation of machinery during maintenance; and individuals working on live electrical equipment who were not familiar with the protective equipment needed for such work.

http://bangordailynews.com/2012/01/09/business/biddeford-bakery-hit-with-osha-fines/

[SharonAnn]

52. Just the "cost of doing business", or so they would say.

[hunter]

34. Yet another American looting.

Somebody walked away with the big bucks and, no, it wasn't the workers.

Hmmm... Would you eat a Twinkie made in China? That might solve their little "bankruptcy" problem.

Just remember stuff like this:

Journalist murdered while covering illegal cooking oil scandal

http://en.rsf.org/chine-journalist-murdered-while-covering-20-09-2011,41024.html

[riverbendviewgal]

85. So much food is coming from china.

Today I was going to buy a can of mushrooms...but both brands available showed that the mushrooms were from China.

I bought fresh ones.

[Highway61]

35. It's always "high labor costs"

Why don't they ever mention what the top officers of the company are reaping in salaries and bonuses? Hummm?

couldn't have anything to do with this:

Hostess Brands....

Top Exec Salary: $1,428,500
Second Exec Salary: $1,389,800 Bonus: $1,200,000
Bonus: $75,000

[SharonAnn]

53. And high management consultant costs, and Wall Street financier costs, and legal costs, and ...

[Dreamer Tatum]

69. You really think that comp is causing the BK? That's silly. nt

[aikoaiko]

37. Little Debbie wins!

[Edweird]

41. Yeah, but their stuff isn't as good - at least not to me.

I like their oatmeal creme pies, but I can only eat so many of them. I stopped buying their Devil Squares about 6 months ago or so. They started tasting funny .

[Safetykitten]

50. TastyKake better not be next to go! I NEED Butterscotch Krimpets from time to time.

[aikoaiko]

63. I'd stock up. Fortunately, they have a shelf life longer than MREs.

10 years easy.

[Edweird]

40. I love their 'ding dongs' and 'cupcakes'. That sucks.

[Safetykitten]

49. This is one of the end time signs.

The US population cannot support a moist snack-cake corporation.

[Critters2]

55. The Hostess/Interstate "day old" Bread Store here closed about 6 mos ago.

It never occurred to me that the whole company might be in trouble. I do love the cupcakes. My dad insists the Aldi ones taste just like 'em. My dad is insane.

[Sherman A1]

57. Try Mrs. Friendlys by Flowers Bakery

They are pretty close, not spot on but not terrible in taste.

[sarcasmo]

67. When people age they loose there taste buds, your dad is not alone :) .

[AtheistCrusader]

56. Does anyone even eat that shit anymore?

[Ron Green]

58. Yeah, these things are staples in the food deserts

of America. Lots of low-information eaters.

[sunwyn]

60. I stopped eating these when I understood how much crap was in them

[Snake Alchemist]

66. According to the article, you're part of the problem. nt

[leveymg]

61. Who's next into extinction, McDonald's and Coca Cola? Is the Big Mac-Coke-Twinkie diet imperiled?

OMG - America, the end is near! You might actually lose weight.

[CrispyQ]

87. OMG, who are the parents of these children?

A child that young & that fat almost borders on child abuse, imo.

When I was a kid, back in the 60s, we had kids in our class that we considered fat, but looking at many of today's youth, the kids back then would only be considered 'heavy' today.

[Blue_Tires]

64. To comment on this story I've brought in my inner child from 1986:

NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!

[Jennicut]

65. Ding Dongs are my one guilty pleasure.

And when I mean one, I mean one. Drake's Cakes makes Ring Dings, which are really the same thing. As a type 1 diabetic, I allow myself to have one once a year. It has only 22 grams of carbs per ring ding so it doesn't really make my sugar jump (anything over 60 grams and I need to take insulin with my meal). Of course, it is full of other crap. But does Hostess make anything with any nutritional value? Must be why they are losing money. But you have to have a treat at least once a year when you are someone like me or you will literally want to kill yourself. I mean, I don't even eat my own birthday cake.

[FarCenter]

68. A true nutritional wasteland

Hostess HoHos, donettes, Cup Cakes, Twinkies, SuzyQ's, Fruit Pie, Ding Dongs, and Zingers.

Wonder Bread, Nature's Pride breads, Home Pride breads, Merita bread, and Beefsteak bread.

Dolly Madison Zingers®, Donut Gems®, Angel Food and Pound Cakes, and a variety of breakfast items like Sweet Rolls, Dunkin Stix and Pecan Rollers.

Drake’s Coffee Cake, Devil Dogs®, Yankee Doodles® and Ring Dings®.

Regional products sold under brands such as Eddy's, Ozark Mill, Butternut, J.J.Nissen, Bread du Jour, Pantry Pride, Sunbeam, SweatHeart, Grandma Emilie's, Cotton's Holsum, Columbo, and Standish Farms.

[LiberalEsto]

72. So the Twinkie is going to sinkie?

Unthinkie!

[Botany]

73. No more sno balls?

[Suji to Seoul]

74. At least the Twinkie will live forever. . .literally!

The only think I ever liked from them were the brownie bites. Everything else was over-sweetened goo!

[tropicanarose]

75. I, for one, hope that they don't go out of business. While unhealthy, I have always liked Hoho's and

Twinkie's are kind of a like a Smithsonian worthy junk food! They are a piece of Americana! =)

[Evasporque]

76. proof economy of scale is not sustainable....nt

[Odin2005]

77. NOOOOOO, not Twinkies!!!

[liberal N proud]

78. Caused by all the healthy eating efforts

Killing Twinkie sales


Adding>>>

[annabanana]

83. sigh.. I STILL like

yum

[SaintPete]

84. Twinkie Story

years ago I bought a 10 year old used car. I drove that car for two years before it died. Cleaning out the trunk, I pulled the spare out and underneath, in near pristine condition, was a Hostess Twinkie, with an expiration dated that matched the year of the car.

Simple math, it was a twelve year old Twinkie. Excuse me, a Twinkie that had "expired" 12 years earlier.

I ate that Twinkie, and it was just as fresh as a brand new cake. I'd be willing to bet that another 12 years could have gone by and the Twinkie would still have been as good as new.

I'll never know who put the Twinkie under the spare, or why. My only hope is that whatever kept that snack alive and well in that dark little pit for 12 years, will work similar magic on me.

I want to live like a Twinkie.

[CrispyQ]

86. Great story.

"I want to live like a Twinkie."

~lol

I lived on Twinkies when I was a kid. ~slurp.

[SomeGuyInEagan]

88. 19,000 employees, many union positions with pension plans

This is going to hurt a lot of families.

[Wistful Vista]

90. Unimportant compared with the pleasure of ridiculing the eating habits of others

donchaknow...

[SomeGuyInEagan]

94. I guess you're right. Might get my priorities in order. n/t

[yellowcanine]

93. I like TastyKakes better anyway.