Twinkies have fallen into a sugary financial runt that they may not be able to come back from. Hostess Brand Inc., the company behind the cream-filled treats filed a motion with the U.S. Bankruptcy Court in New York, Friday (Nov. 16) to get permission to shut down.
The Texas-based company has roughly $2.5 billion in sales from all of its products, but has been unable to settle its debts.
With a Twinkie shortage threatening the snack world, Hostess has taken steps towards a full on liquidation of assets, closing down production in 33 plants across the nation. “We’ll be selling the brands and as much of the infrastructure as we can,” company spokersperons Lance Ignon said. “There is value in the brands. But some bakeries will never open again as bakeries.”
Hostess has found itself in a precarious position, but as the New York Times pointed out, Twinkies may not be totally in fear of extinction:
And there is always a chance that the unions and Hostess (and its private equity backers) will reach a deal before the plug is pulled. More broadly, there is a good chance we will see the Hostess brands again. If the debtor does liquidate, that will include the sale of Hostess’s intellectual property, including trademarks like Twinkie.
One could easily imagine some other snack maker, or an outside investor, would be quite willing to acquire the rights to make Twinkies, Ding Dongs and those curious “pies” with all the white frosty stuff on the outside.
If you’re a fan of Twinkies, here’s hoping Hostess is able to rectify this issues before chaos ensues.
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Photo: ABC News