Thursday, January 19, 2012




Will Ding Dongs, Wonder Bread, and Twinkies disappear? 

Hostess Brands to chapter 11 bankruptcy, again. Just a few years after barely climbing of an earlier bankruptcy filing from 2004, Hostess Brands has announced that it is once again filing for Chapter 11 bankrupcy protection. The Wall Street Journal reports that skyrocketing debt and unsustainable labor costs have driven the company's cost structure to out of control levels, which have made it difficult for Hostess to main tain a competitive business in today's economic environment.
In a worst case scenario, Hostess could be taken over by the government and federalized, as was the case with General Motors. This is not a far fetched idea, as several of the attorneys representing the Teamster union during the bankruptcy filings are reportedly the same ones that worked with the Obama Administration during the GM takeover. I personally don't care if the whole mess goes in the slammer. Junk food is junk food! 

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