I did a post on this subject almost a year ago when Hostess filed for bankruptcy and now it looks like they are at their end.
The company has been in and out of bankruptcy for a while now. And today they released information that they will be closing for good.
The company had warned it would file a motion in U.S. Bankruptcy Court to shut operations if enough workers didn't end a week long strike by 5 p.m. ET Thursday.
And On Friday, it followed through on that threat.
My only question now is, will someone step up and save the brand or will we be saying goodbye forever to some of our favorite bread and snack icons that have been around since the 1930's?
Previous Post January 16, 2012:
This last week Hostess Brands Inc, filed for Chapter 11 bankruptcy.
Hostess filed for bankruptcy almost two years ago and had emerged from it last September.
Once in bankruptcy court, the maker of Twinkies and Wonder Bread will try to reduce debt and renegotiate labor contracts.
Hostess, carries over $860 million in debt, and they employ over 19,000 people.
Hostess is the largest wholesale baker and distributor of fresh bakery products in the United States and they could be gone soon.
Rising labor costs and increased competition has made it increasingly hard.
But longer term, the 87-year-old company has a bigger problem: health-conscious Americans favor yogurt and energy bars over the dessert cakes and white bread they devoured 30 years ago.
Last year, 36 percent of Americans ate white bread in their homes, down from 54 percent in 2000.
Meanwhile, about 54 percent ate wheat bread, up from 43 percent in 2000.
Consumption of healthy snacks is growing, too. About 32 percent of Americans ate yogurt at least once in two weeks in 2011, for instance, up from 18 percent in 2000.
We're less likely to be snacking on items that we shouldn't be snacking on.
Whether you eat healthy or not, can you imagine a world without Wonder bread or Twinkies?
