Hostess, a company that is famous for their delicious cream filled, high calorie treats, decided to make a last ditch effort to save their company last month when they filed for bankruptcy. According to ABC News, the snack company was hopeful that their bankruptcy filing would end up helping them to conserve their money, satisfy their creditors, and eventually get the company up and running. Hostess has been a longstanding company, which is why the CEO insisted that he doesn’t want to see the pastries thrown away.
Unfortunately, the motion for bankruptcy wasn’t enough to save this company last month. Iconic sweets like Ding-Dongs, Ho-Hos, Twinkies, and Wonder Bread may disappear as the 82-year-old company folds. The CEO of Hostess, Greg Rayburn, admits that the only way to preserve the products that come out of Hostess is to partition the company and wind down the business. News reports say that as soon as Hostess announced their eminent demise, consumers went into Twinkie frenzy. Men and women who love the spongy cream-filled snack ran to local groceries and department stores in order to get as many boxes as possible. In some states, Twinkies were obsolete in a matter of minutes. Not long after, boxes of Hostess snacks appeared on EBay, selling for double, triple, and quadruple their original price. One report by ABC news says that four boxes of Twinkies were listed on EBay for $3 million. There is no news as to whether or not the boxes actually sold.
One crazed Hostess fan has recently taken to making tutorial videos on YouTube. He guides other consumers through the process of making their own imitations of the Hostess favorites. Up until last month, Hostess sales were spiraling downward. As Americans shift to a “healthier” food approach, “junk food” snacks like Ding-Dongs and Wonder Bread are becoming obsolete. Now, there are health food marketplaces like Whole Foods and Sprouts which are drawing in health-conscious consumers. More and more Americans are turning “organic” or making lifestyle choices like going “gluten-free” or “vegan.” Documentaries posted for free on Netflix are circulating through households to encourage the citizens of this nation to heat healthier.
Because Hostess’ main consumers are moms buying Hostess snacks for their kids, they recently saw a drop in sales here. This is because more moms are starting to swap pastries for pears and cakes for carrots in their children’s lunch boxes. On top of poor sales, Hostess received another blow when factory workers at the company went on strike. This left the company without employees, and the strike eventually ended in a stalemate. The company will now liquidate their assets, just as others do when they file for a Chapter 7 bankruptcy.
News sources believe that if a buyer can be found to take over the company, there may be hope for a Twinkie resurrection in the future. This is because Mexican companies have been toying with the idea of buying the company. Due to the fact that sugar is cheaper in Mexico, a transfer purchase may allow the company to survive in different hands. Bankruptcy didn’t necessarily save the Twinkie, but it may be able to help save you. When you file for a Chapter 7 liquidation bankruptcy, it will put a freeze on all creditors who have been contacting you to ask for money. They will no longer be able to contact you, sue you, or take action against you as you work through your finances. If you choose to liquidate, this means that you will have to sell most of your possessions and use the proceeds to pay back creditors. In the end, you may be able to start afresh and debt-free. If you are interested in filing for a personal bankruptcy, then find a local attorney on this website today to help you!