Twinkies likely to survive sale of Hostess

Twinkies likely to survive sale of Hostess

Credit: Getty Images

MIAMI, FL - NOVEMBER 16: In this photo illustration, Hostess Brands Twinkies are shown in an open box on November 16, 2012 in Miami, Florida. Hostess Brands Inc. decided to liquidate its business after striking workers with the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union didn't return to normal work levels as the company management had demanded. (Photo illustration by Joe Raedle/Getty Images)

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by Associated Press

khou.com

Posted on November 19, 2012 at 8:16 AM

Updated Thursday, Jan 9 at 8:03 PM

DETROIT  -- Twinkie lovers, relax. The tasty cream-filled golden spongecakes are likely to survive, even though their maker will be sold in bankruptcy court.

Hostess Brands Inc., baker of Wonder Bread as well as Twinkies, Ding Dongs and Ho Ho's, will be in a New York bankruptcy courtroom Monday to start the process of selling itself.

The company, weighed down by debt, management turmoil, rising labor costs and the changing tastes of America, decided on Friday that it no longer could make it through a conventional Chapter 11 bankruptcy restructuring. Instead, it's asking the court for permission to sell assets and go out of business.

But with high brand recognition and $2.5 billion in annual revenue, other companies are interested in bidding for at least pieces of Hostess.

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