Hostess snack cake addicts, the Hostess Twinkie is not in danger of extinction. Despite the fact that Hostess Brands, Inc. announced on January 10, 2012 that they filed for reorganization under Chapter 11 Bankruptcy, you will still be able to buy your favorite sugary snack foods including Twinkies, Hostess cupcakes, HoHo's, and Drake's Devil Dogs. And that squishy Wonder Bread that sticks to the roof of your mouth? That's also part of the Hostess Brands family and you will still be able to buy a loaf to make your daily peanut butter and jelly sandwich.
Much like last year's rumor that Pepsico would be discontinuing Cap'n Crunch cereal, the buzz on the Web today was all about the disappearing Twinkie. Relax. A reorganization of a major company like Hostess Brands doesn't mean you will have to stockpile Twinkies in every closet of your house. (continue reading below)
With a current debt load of $860 million, the company desperately needs a new business plan. Once the courts approve the Chapter 11 filing, Hostess will use the $75 million in financing it has secured to make the company more competitive.
No need for panic, Twinkies fans. Hostess will continue to conduct business as usual and they state that all of their brands -- including Wonder bread, Butternut breads, Drake's cakes, Twinkies and Hostess cakes -- will be readily available at your favorite supermarket, convenience store or Hostess outlet stores.
Wondering what's in a Twinkie? Check out a video all about this sugary sponge cake here.
Curious as to what Chapter 11 Bankruptcy is? According to US Courts.gov: "The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time."
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