US: Hostess "seeking bankruptcy protection"
Hostess is seeking bankruptcy protection once more, said the WSJ
US baker Hostess Brands is reportedly on the cusp of filing for Chapter 11 bankruptcy protection.
A report in The Wall Street Journal said yesterday (9 January) that Hostess had already lined up financing to keep the company afloat in bankruptcy proceedings.
If Hostess does move into Chapter 11, it will be the second time the troubled firm has undergone major restructuring - the company was previously known as Interstate Bakeries, which went bankrupt in 2004 and emerged from it in 2009.
The WSJ, quoting people familiar with the matter, said Hostess is US$860m in debt and faces high labour costs and raw material prices. It also cited SymphonyIRI data that claimed sales of Hostess's key brand Twinkie fell 2% in the year to 25 December.
A spokesman for Hostess declined the opportunity to comment
In September the WSJ reported Hostess had hired restructuring advisers to help secure its future in the midst of changing consumer habits and higher input costs.
US baker Hostess Brands, which filed for Chapter 11 protection earlier this year, has said it is still eyeing an exit from bankruptcy despite warning employees jobs could go if the company is sold or ...
Brian Driscoll, the former CEO of US baker Hostess Brands, which is in bankruptcy protection, has joined Diamond Foods as its chief executive....
- Deal or no deal: Frozen sale makes sense for Kerry
- On the money: How Greencore is outperforming
- Comment: Mondelez digital strategy suffers blow
- Shopper trends: Promos can mean higher prices
- JBS sees big opportunity from Primo Smallgoods
- Kerry puts frozen food unit on block - reports
- Coca-Cola eyes long-term rewards with dairy push
- Post issues warning over US cereal sector sales
- UPDATE: Greencore eyes US$1bn US business
- Abraaj outbids Kellogg with fresh Bisco Misr offer