If only the underside line of Host or hostess Brands were as rich since the calorie count associated with its Twinkies.
The actual 82-year-old company, that also makes HoHos, DingDongs as well as Wonder Bread, submitted for bankruptcy safety, blaming what this said are burdensome union contracts as well as pension liabilities.
Experts said that in spite of a cupboard associated with iconic confections, Hostess may be unable to cash in on trends which theoretically should fatten it's profit.
"You can't get a paper without having reading about obesity in the usa, " said Adam Hanft, leader of Hanft Tasks, a brand-strategy firm in Ny. "It seems such as it's pretty bad management they can't make the most of a trend such as obesity. "
However the unhealthy image of numerous of its items, rising costs associated with key ingredients and also the emergence of trendy grocery chains stocking higher-end sweets have all used a toll, specialists said.
"Twinkies is really a well-known brand, but did a person ever hear somebody discuss Twinkies in an optimistic light? " requested Ted Gavin, head from the bankruptcy practice from NHB Advisors, the turnaround consulting organization in Philadelphia.
Wednesday's Chapter 11 submitting comes just 3 years after the Irving, Texas-based company completed a significant reorganization stemming from the 2004 bankruptcy.
However the first restructuring, that was completed in Feb 2009, resulted in just "incremental change" which was "insufficient" to tackle long-standing labor as well as pension issues, the organization said in the statement.
Hostess said it is negotiating hoped-for financial savings with its work unions.
"The company's present cost structure isn't competitive, primarily because of legacy pension as well as medical benefit responsibilities and restrictive function rules, " the organization said.
Hostess offers about 19, 000 workers and operates thirty six bakeries, 565 distribution facilities and 570 bakery outlet stores within the U. S. No layoffs are planned, a spokeswoman stated.
The company offers two bakeries and seven stores in Los Angeles as well as Orange counties, using about 550 individuals.
On social press websites, Hostess-related chat rose nearly 5, 000% this 7 days as news from the impending bankruptcy distribute, according to NetBase, a social networking analytics firm within Mountain View, Calif.
Many people expressed cultural nostalgia with regard to products launched within bygone eras.
"Hostess within bankruptcy, Kodak reeling, Woolworths the distant memory, " one Tweets user said inside a post. "A certain America is basically gone. "
Others took a far more sarcastic tone.
"Charles Barkley continues Weight Watchers and today Hostess files with regard to bankruptcy. Coincidence? inch another Twitter person wrote.
The bankruptcy submitting also demonstrates the mixed outcomes of private equity companies that buy in to troubled companies — the hot topic within the Republican presidential competition as rivals assault Mitt Romney's personal equity background.
New York-based Ripplewood Holdings required a controlling curiosity about Hostess in this year's restructuring but wasn't in a position to reverse its monetary travails. Hostess reported net sales around $2. 5 million in its final fiscal year, but had a net lack of $341 million.
Within its filing, Hostess listed assets as high as $1 billion, however liabilities exceeding $1 million.
It listed as much as 100, 000 lenders, including unions as well as pension funds symbolizing current and previous workers.
Hostess, that was formerly known because Interstate Bakeries Corp., secured $75 zillion in debtor-in-possession financing from the New York investment firm to finance itself through the actual bankruptcy.
However, the historical it’s likely that against Hostess, Gavin stated.
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