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.
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