Hostess made headlines in 2012, when it was announced that the historic snack-maker would file for bankruptcy. An American icon, Hostess is perhaps best known for its Twinkies, a cream-filled snack that has been a favorite for generations. But in November 2012, Hostess announced that, due to financial and economic challenges, the company planned to cease plant operations, lay off the majority of its 18,500 employees, and liquidate its assets. By March 2013, Apollo Global Management acquired Hostess Brands for over $410 million. Now, under new management and a leaner infrastructure, Hostess and Twinkies are about to make the sweetest comeback in America.
A Business Bankruptcy Won’t Stop Twinkies
The sweet comeback is scheduled for July 15, 2013, when Twinkies are finally going to be re-introduced to shelves all across the nation. Aside from Twinkies, Hostess is pushing out other best sellers such as CupCakes and Donettes. While Hostess promises that all of the snacks will be made with the same classic recipes, even after the business bankruptcy, the packaging will be revised. The new boxes will have the tagline, “The Sweetest Comeback in the History of Ever.”
Since filing for bankruptcy, many imitators have entered the market, trying to fill the void left behind. However, despite Twinkies and other iconic Hostess snacks being off the shelves for months, imitators haven’t been able to live up to the Hostess brand. Now, with the help of Apollo Global Management, Hostess is on the verge of making the biggest business turnaround after filing for bankruptcy.
Before Hostess filed for the Chapter 11 business bankruptcy, the company had struggled for years because of poor management. The troubles came to unbearable heights in 2012, when workers blamed the mismanagement and the economy refused to recover at warp speed. Higher medical and pension costs coupled with the rise of competitors finally forced Hostess to file for a business bankruptcy.
With Twinkies poised to make a major comeback, the day that Hostess filed for bankruptcy may soon be forgotten. With consolidation, new management, and streamlined workflow processes, it is clear that Hostess has learned and made the most of its business bankruptcy.