Hostess Brands preparing for Chapter 11 filing - New York News

Hostess Brands preparing for Chapter 11 filing

Posted:

IRVING, Texas -- 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.

Read more at WSJ.com.

  • Local NewsLocal NewsMore>>

  • Deep split in Port Authority over unfinished WTC tower

    Deep split in Port Authority over unfinished WTC tower

    Wednesday, April 23 2014 9:03 PM EDT2014-04-24 01:03:40 GMT
    Board members of the Port Authority of New York and New Jersey revealed a deep split Wednesday over the agency's role in effecting the completion of the long-delayed 3 World Trade Center project, with some commissioners lauding the effort and others expressing grave concerns. The discussion at the monthly board meeting offered a rare glimpse into the negotiations that have been going on behind the scenes in recent months.
    Board members of the Port Authority of New York and New Jersey revealed a deep split Wednesday over the agency's role in effecting the completion of the long-delayed 3 World Trade Center project, with some commissioners lauding the effort and others expressing grave concerns. The discussion at the monthly board meeting offered a rare glimpse into the negotiations that have been going on behind the scenes in recent months.
  • God's Love We Deliver virtual bake sale for birthday cakes

    God's Love We Deliver virtual bake sale for birthday cakes

    Wednesday, April 23 2014 6:36 PM EDT2014-04-23 22:36:46 GMT
    God's Love We Deliver provides meals to people in the New York City area who are too sick to shop and cook for themselves. Clients also receive birthday cards that are decorated by local school students. Sometimes a cake is the only birthday gift that God's Love's clients will receive.
    God's Love We Deliver provides meals to people in the New York City area who are too sick to shop and cook for themselves. Clients also receive birthday cards that are decorated by local school students. Sometimes a cake is the only birthday gift that God's Love's clients will receive.
  • Success Academy students waiting for word on new locations

    Success Academy students waiting for word on new locations

    Wednesday, April 23 2014 5:58 PM EDT2014-04-23 21:58:48 GMT
    The mayor's office is saying one thing. The charter schools another. It is a lot of he said, she said. The bottom line is that right now the future of three charter schools is still unclear. Jennifer Duran is afraid because she doesn't know where her two children are going to school next year. Both kids attend success academy Harlem 4, one of three charter schools that still does not have a set location. The other two charters are Success Academy Jamaica in Queens and Success Academy City Hall.
    The mayor's office is saying one thing. The charter schools another. It is a lot of he said, she said. The bottom line is that right now the future of three charter schools is still unclear. Jennifer Duran is afraid because she doesn't know where her two children are going to school next year. Both kids attend success academy Harlem 4, one of three charter schools that still does not have a set location. The other two charters are Success Academy Jamaica in Queens and Success Academy City Hall.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices