US: Unsteady Hostess "calls in restructuring advisers"
Hostess has called in financial advisers and lawyers to help weather the financial storm.
US baker Hostess Brands has reportedly hired restructuring advisers as it continues to struggle with changing consumer habits, high labour costs and rising raw material prices.
The Twinkies and Wonder Bread baker is working with law firm Jones Day and financial-services firm Perella Weinberg Partners to balance the books and handle creditors, The Wall Street Journal said yesterday, citing anonymous sources.
Texas-based Hostess has struggled since emerging from bankruptcy protection in 2009 and has been hit hard by high prices for sugar, flour and other ingredients, as well as the high costs inherent in having a heavily unionised workforce.
Trends for healthier eating have also affected its bottom line, despite efforts to offer consumers healthier choices, like reducing sodium levels in its bread portfolio.
Officials at Hostess and Jones Day were unavailable for immediate comment.
The sources told the WSJ that Hostess is trying to renegotiate hundreds of separate labour contracts to lower costs and could end up seeking bankruptcy protection to do so if unable to reach agreements with unionised workers outside of court.
Wall Street restructuring advisers usually look at a range of options for helping distressed companies, including raising new debt or equity or handing ownership stakes to creditors in lieu of the debt.
The UK government this week launched a series of measures, drawn up with industry, to drive the food sector's growth overseas. The so-called export action plan came in the week that food and drink gia...
Carrefour again grabbed the headlines this week, with speculation intensifying that there could be change of leadership at the company. just-food understands an announcement is due in days. Elsewhere ...
Major UK retailers reported a bit of a mixed Christmas, with Tesco's shares sliding following a trading announcement, while Sainsbury's claimed a "record-breaking" festive period. The fortunes of US b...
The performance of the UK food retail sector over Christmas came under scrutiny this week and there were some clear winners and losers. Elsewhere, the M&A rumour mill continued to turn, with German yo...
- Why Arla upbeat about LatAm prospects
- M&A Watch - Could Cloetta be takeover target?
- Sweets & Snacks Expo: just-food's pick
- Focus: Why Dairy Crest needs to offload dairies
- Nomad's post-Iglo opportunities
- Yildiz eyeing further deals - reports
- PAI, Pamplona "eyeing Bakkavor stake"
- Weetabix gets new private-equity investor
- Food industry news of week: GMOs, Arla, Mondelez
- Wal-Mart acts on animal welfare, antibiotics