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.
Sunday, May 19 2013 4:05 PM EDT2013-05-19 20:05:22 GMT
The federal judge presiding over civil rights challenges to the stop-and-frisk practices of the New York Police Department has no doubt where she stands with the government.
The federal judge presiding over civil rights challenges to the stop-and-frisk practices of the New York Police Department has no doubt where she stands with the government.
Sunday, May 19 2013 3:37 PM EDT2013-05-19 19:37:14 GMT
Commuters are bracing for a difficult trip around southwest Connecticut and to New York City beginning Monday as workers repair the Metro-North commuter rail line crippled by a derailment and crash.
Commuters are bracing for a difficult trip around southwest Connecticut and to New York City beginning Monday as workers repair the Metro-North commuter rail line crippled by a derailment and crash.
Sunday, May 19 2013 3:14 PM EDT2013-05-19 19:14:07 GMT
Authorities say one person is dead and another was injured when the vehicle they were in ran off the road and crashed into Huntington harbor on Long Island Saturday evening.
Authorities say one person is dead and another was injured when the vehicle they were in ran off the road and crashed into Huntington harbor on Long Island Saturday evening.
Sunday, May 19 2013 2:56 PM EDT2013-05-19 18:56:41 GMT
The NYPD says a 14-year-old girl was shot and killed on a Queens MTA bus Saturday night. The incident happened around 8:50 p.m. on board the Q-6 bus on Sutphin Avenue and Rockaway Boulevard
The NYPD says a 14-year-old girl was shot and killed on a Queens MTA bus Saturday night. The incident happened around 8:50 p.m. on board the Q-6 bus on Sutphin Avenue and Rockaway Boulevard
Sunday, May 19 2013 12:24 AM EDT2013-05-19 04:24:33 GMT
Officials in Connecticut say it was amazing that there were no fatalities or more injuries after two Metro-North trains collided around 6 p.m. in Fairfield Friday evening.
Officials in Connecticut say it was amazing that there were no fatalities or more injuries after two Metro-North trains collided around 6 p.m. in Fairfield Friday evening.
Saturday, May 18 2013 10:14 PM EDT2013-05-19 02:14:35 GMT
An airline official says a US Airways flight with 34 people aboard was forced to make a belly landing at Newark International Airport after experiencing landing gear trouble. No injuries were reported.
An airline official says a US Airways flight with 34 people aboard was forced to make a belly landing at Newark International Airport after experiencing landing gear trouble. No injuries were reported.
