Looks like everyone favorite Twinkies is in trouble. The makers of Twinkies, Hostess is seeking bankruptcy protection as the company is struggling to make ends meet.
Hostess Brands Inc., the maker of Twinkies and Wonder Bread, is seeking bankruptcy protection, blaming its pension and medical benefits obligations, increased competition and tough economic conditions.
In its filing with the U.S. Bankruptcy Court for the Southern District of New York, Hostess disclosed that its biggest unsecured creditor is the Bakery & Confectionary Union & Industry International Pension Fund, which it owes approximately $944.2 million.
Its second-largest unsecured creditor, Central States, Southeast and Southwest Areas Pension Plan is owed far less, about $11.8 million.
Hostess President and CEO Brian Driscoll said in a statement that the company is working to reach a consensual agreement with its unions to modify its collective bargaining agreements. The company said that its current cost structure is not competitive mostly because of legacy pension and medical benefit obligations and restrictive work rules.
In its bankruptcy filing, Hostess also listed its estimated assets between $500 million and $1 billion and its estimated liabilities at more than $1 billion.
Hostess said that it will look to restructure into a “strong, competitive” company. It will continue to run bakeries, outlet stores and distribution centers and deliver its goods during the process.
Hostess has about 19,000 employees and operates in 49 states. Annual sales are about $2 billion, according to the company’s website.