Sweet spell over as Twinkie maker heads for bankruptcy

 
City A.M. Reporter
HOSTESS Brands, the bankrupt maker of Twinkies snack cakes and Wonder Bread, will this morning seek a US court’s permission to go out of business after failing to get wage and benefit cuts from thousands of its striking bakery workers.

The 82-year-old Hostess, which has about $2.5bn (£1.5bn) in sales and is one of the largest wholesale bakers and distributors of breads and snack cakes in the United States, filed the request with the US Bankruptcy Court in New York early Friday morning. A hearing on the matter is set for this morning.

The Irving, Texas-based company said the liquidation would mean that most of its 18,500 employees would lose their jobs. Hostess immediately suspended operations at all of its 33 plants across the US as it moves to start selling assets.

“We’ll be selling the brands and as much of the infrastructure as we can,” said company spokesman Lance Ignon. “There is value in the brands. But some bakeries will never open again as bakeries.”

Hostess products, particularly the golden, cream-filled Twinkies cakes, are deeply ingrained in US pop culture and have long been packed in school children’s lunch boxes.