Hostess has filed for Chapter 11 bankruptcy protection for the second time in two years. Currently the company holds around $860 million in debt—much of which is tied to labor unions and pension funds.
“We remain hopeful that we can reach an agreement that will allow us to amend our labor contracts so that we can emerge from Chapter 11 as a highly competitive company that provides secure jobs for our employees,” the company’s president and chief executive, Brian J. Driscoll, said in a statement. If the company is unable to reach a new labor deal, Hostess said it would ask the bankruptcy court to halt the existing agreement.
So what will happen to beloved brands like Twinkies, Drakes Cakes and Wonder Bread? Odds are these iconic products would survive even if Hostess doesn’t. And if the legends hold true, they might even survive the apocalypse.
(via Dealbook NYT)