By Kyle Olson

Hostess Brands Inc, the infamous producer of iconic Twinkie and Ho Hos dessert cakes, is currently in talks with potential buyers and the company’s labor union in an effort to avoid liquidation as a result of bankruptcy.

According to Reuters, a source familiar with the ongoing negotiations said the outcome of talks was far from definitive at this point. Any deal to sell the company would revolve around Hostess’ ability to successfully resolve labor issues with the union.

Industry analysts say that private equity firms will likely be the best suitors to buy the famous company.

Other food industry companies such as Mexico’s Grupo Bimbo and Flower Foods, Inc are said to be possible bidders as well, according to Reuters.

Hostess filed for bankruptcy in January with $860 million in debt.

The iconic American dessert brand was founded in 1930 and originally stuffed Twinkies with a banana cream filling. Bananas were rationed during World War II, which forced Hostess to switch their ingredients to the famous vanilla filling.

According to The Huffington Post, close to 20,000 employees were served with WARN (Worker Adjustment and Retraining Notification) notices last month.

The notices were mailed in accordance with a federal law that requires companies to give employees 60 days notice before closing a facility or ordering mass layoffs.

Hostess has stated that layoffs are not definite and hope to emerge from bankruptcy as a growing company, according to Reuters.

Companies Turning To Bankruptcy When Burdens Are Too Heavy To Handle

Many companies have been turning to bankruptcy in order to eliminate debt and restructure their foundation of doing business in order to turn profits.

Companies such as American Airline’s parent company AMR, Kodak Film and the Tribune Co have all filed for bankruptcy recently in an attempt to either save their respective companies or get out of mounting debt.

Although many people think bankruptcy is the end, it is often the start of a new and prosperous life of being debt free.

As evidence, the American automobile industry was on the skids a few years ago. Citing heavy competition from overseas manufacturers and rising debt, American car brands such as General Motors, Chrysler and Ford Motor Group all filed for bankruptcy.

Since the filings, the American auto industry has bounced back in a big way. Ford recorded profits unseen in decades and other car companies have seen their profits rise as well.

Experts warn that bankruptcy isn’t for everyone or every company for that matter and should be considered on a case by case basis. However, if deemed necessary and a good option for you or your business, experts say that bankruptcy can offer second chances to people and companies that so desperately need them.