Tap to Call - (877) 250-8242

Maker of Twinkies Shuts Down Months After Filing for Bankruptcy

November 28, 2012


Hostess Brands Inc., perhaps best known for its creation of the iconic Twinkie, officially announced that it is closing its doors, several months after filing for bankruptcy protection, according to a report from ABC News.

Sources say the company announced that it is planning to close its operations, but many of its favored treats could continue to live on under new ownership.

Due to rising worker costs, evolving American tastes, and years of management mistakes, industry analysts have been predicting the demise of Hostess for a long time. And these dour predictions finally proved correct earlier this month.

Sources note that Hostess dramatically reduced its marketing efforts in recent years, as it wrestled with rising debts. At the same time, its competitors introduced new, healthier snacks, while Hostess relied on its traditional unhealthy treats.

The company, which was founded in 1888, is best known for producing Twinkies, a cake-like snack with 150 calories and 4.5 grams of fat packed into a relatively tiny snack.

And despite the company’s decision to close its operations, it still holds several valuable assets. Company CEO Gregory Rayburn told sources this week that the company pulled in $2.5 billion in revenue last year alone.

In addition, the Twinkies product brought in $68 million in revenue in 2011. However, this revenue was not enough to offset mounting debts and rising labor costs, which forced Hostess into bankruptcy protection this January.

And after the company failed to reach an agreement with its labor union, it decided that life after bankruptcy would be not be terribly profitable, which led to the Texas-based company’s abrupt, but not surprising, demise.

The news, however, is not all bad for American consumers. Sources believe that several of the company’s most popular brands, including Ding Dongs and Ho Ho’s, will eventually be purchased by another pastry maker.

There may, however, be a brief period of time between the removal of these items from store shelves and their reincarnation under new ownership. So fans of these popular Hostess snacks might want to stock up on the tasty treats before they become impossible to find.

Back to Newspaper Home

Tap to Call - (877) 250-8242

PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Your request for contact will be forwarded to the local lawyer who has paid to advertise in the ZIP code you provide. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network nor does it analyze a person's legal situation when determining which participating lawyers receive a person's inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. To see the attorney in your area who is responsible for this advertisement, please click here, or call 866-200-8052.

FLORIDA ONLY: Total Bankruptcy is considered a lawyer referral service in the state of Florida under the Florida Rules of Professional Conduct. By all other standards, Total Bankruptcy is a group advertisement and not a lawyer referral service.

If you live in Mississippi, Missouri, New York or Wyoming, please click here for additional information.

By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.