When Hostess announced that it would be seeking protection under Chapter 11 bankruptcy last year, the entire nation was caught by surprise. As the nation’s maker of Twinkies, Hostess has been producing iconic American treats such as Ho Hos and Wonder Bread for decades. After filing for Chapter 11, Hostess began selling properties to recoup some money. Of the 61 properties being sold, the state hit the most is Michigan with 7 plant closures. After hostess filed for Chapter 11, the Irving, Texas-based company was purchased by Apollo Global Management and Metropoulos & Co. for $410 million. So what’s next for the Twinkie?
Twinkie’s Bankruptcy Revenge
Now under the direction of Apollo Global Management and Metropoulos & Co., the classic American snacks such as the Twinkie are expected to return with a revamped marketing campaign. With these treats having been threatened by Chapter 11 bankruptcy before, Apollo and Metropoulos are meticulously planning how they’re going to bring the Twinkie back. However, they’re plans have stayed relatively quiet and off radar. Despite the Chapter 11 filing, Metropoulos has stated that he would like to see Twinkies back on shelves by summertime.
To secure a successful comeback and avoid the chance of a repeated bankruptcy, Campbell Mithun asked for potential ideas from students applying for internship positions. These ideas included Twinkie food trucks, smartphone apps, and alcohol flavored Twinkies. Whether or not any of these ideas are developed before they hit shelves, it is clear that the new management is trying to make the bankruptcy recovery as smooth as possible.
It’s important to note that the comeback is only possible because Hostess sought protection behind a Chapter 11 business bankruptcy. Chapter 11 allows companies to function while reorganizing affairs, assets, and debts to allow the company to pay off creditors. Without the Chapter 11 bankruptcy filing, it is unclear whether or not Twinkies would have had a second act, but we’re glad they do!