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>>

  • Stuck NJ Transit train removed

    Stuck NJ Transit train removed

    Tuesday, July 29 2014 10:03 AM EDT2014-07-29 14:03:41 GMT
    A New Jersey Transit commuter train that became disabled just outside the Hudson River tunnel in Manhattan on Tuesday has been removed. 1,000 passengers were on board when the Northeast Corridor train became stuck, according to NJ Transit officials. A rescue train was attached to the disabled train and removed to Penn Station about an hour behind schedule. It is not clear what caused the mechanical problem. There are residual delays on NJT trains into and out of Penn Station.
    A New Jersey Transit commuter train that became disabled just outside the Hudson River tunnel in Manhattan on Tuesday has been removed. 1,000 passengers were on board when the Northeast Corridor train became stuck, according to NJ Transit officials. A rescue train was attached to the disabled train and removed to Penn Station about an hour behind schedule. It is not clear what caused the mechanical problem. There are residual delays on NJT trains into and out of Penn Station.
  • The Big Idea

    Making New York City more energy efficient

    Making New York City more energy efficient

    Tuesday, July 29 2014 9:22 AM EDT2014-07-29 13:22:47 GMT
    More than half the population of New York City rides public transportation to work. No other metropolis in this country even approaches that percentage or the MTA's total number of riders. For that reason, New York likely ranks as the most energy-efficient city in the nation. But what would it take to make the city even more energy-efficient or even self-sufficient?
    More than half the population of New York City rides public transportation to work. No other metropolis in this country even approaches that percentage or the MTA's total number of riders. For that reason, New York likely ranks as the most energy-efficient city in the nation. But what would it take to make the city even more energy-efficient or even self-sufficient?
  • 2 U.S. marshals, 1 NYPD detective wounded; fugitive killed in Manhattan

    2 U.S. marshals, 1 NYPD detective wounded; fugitive killed in Manhattan

    Tuesday, July 29 2014 8:27 AM EDT2014-07-29 12:27:36 GMT
    Two deputy U.S. marshals and an NYPD detective are expected to recover after they were seriously wounded in a shootout with a fugitive sexual assault suspect in the West Village in Manhattan, officials said. The shootout happened in smoke shop called Smoking Culture on West 4th Street near Jones Street.


    Two deputy U.S. marshals and an NYPD detective are expected to recover after they were seriously wounded in a shootout with a fugitive sexual assault suspect in the West Village in Manhattan, officials said. The shootout happened in smoke shop called Smoking Culture on West 4th Street near Jones Street.

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