Hostess Brand Impossible To Save

Hostess Brand Impossible to Save? Wonder bread goods and Hostess cake products were sold by Continental Baking Company in New York City and they filed bankruptcy Chapter 11 On November 2012 (Ghillyer, A.W, 2014). This caused over eighteen hundred people to lose their jobs. A lot of the consumers were upset because they feared if they lost Hostess Twinkies their business would go down. Some entrepreneurs wanted to make a profit by buying Twinkies from e-bay. Wonder bread, Twinkies, Ho-Ho's, Ring Dings, and Ding-Dongs were all pointing the finger at each other for their failure. The leadership should be blamed for the company’s failure, because there were signs the company was going down. They should have investigated the problem and took actions to solve it. The sad part is the company has been in bankruptcy for eight years out of eleven. All of their equipment and products will be sold through a sale called 363(Ghillyer, A.W, 2014) . Any financial problems they leave behind will not be
This made the company feel their future was secure. It is okay to listen to what is being said, but without evidence there is no security. Hostess filed their first bankruptcy case in 2004. They were burdened by a state product line, high labor cost, many different unions, five-thousand delivery routes, forty different pensions, their balance sheet showed over four- hundred million dollars in debt (Ghillyer, A.W, 2014).Bimbo Bakery had a five-hundred eighty million dollar bid for Interstate Bakery Corporation, which stayed in bankruptcy for five years trying to stop Bimbo Bakery from buying them out. With the layoffs, they concluded that that would have over one- hundred ten million dollars in savings. Private equity firms and hedge funds conduct was ethical because they saw a way to turn the business around. They were going to take care of the debt and provide supplemental