DETROIT (AP) — 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 today 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.
254-a-15-(John Pottow (PAH'-toh), professor, University of Michigan Law School, in AP interview)-"creditors of Hostess"-John Pottow, a bankruptcy expert at the University of Michigan, says he expects that Twinkies will be baked again -- by another company that will offer to buy some of Hostess Brands' divisions. (18 Nov 2012)
<<CUT *254 (11/18/12)>> 00:15 "creditors of Hostess"
253-a-14-(John Pottow (PAH'-toh), professor, University of Michigan Law School, in AP interview)-"or Wonder Bread"-John Pottow, a bankruptcy expert at the University of Michigan, says he suspect one or more companies --which could even be foreign entities, will step forward to buy some of the Hostess brand divisions. (18 Nov 2012)
<<CUT *253 (11/18/12)>> 00:14 "or Wonder Bread"