Jump to Navigation

Commercial bankruptcy of Hostess leads New Jersey to want snacks

Many of our readers in New Jersey may have spent at least a part of their week running to the grocery store to snap up the remaining inventory of Hostess snacks such as Twinkies and Ho-Hos. Stores here and across the nation have reported an increase in snack sales since the company who manufactures the products announced that it intended to file for a commercial bankruptcy and liquidate. The liquidation could mean an end to the once-popular snack line.

In addition to losing a brand that has been in existence for many years, the commercial bankruptcy and liquidation could mean the end of 18,500 jobs. The job losses would come from the employees of Hostess, many of whom work in manufacturing plants across the nation. The company asserts that it has been placed in this decision due to the lowering demand for its high-fat, high-sugar snacks and because of an on-going labor dispute.

However, like many companies in New Jersey, the business has seen profits decline as the economy and consumers changed. This decrease in sales led to the $1 billion business to accumulate $860 million in debt. This high debt load may have made repayments to creditors nearly impossible.

Though many in our state and elsewhere have lamented the loss of their beloved snack items, the loss of jobs and income to employees is troubling for many people. The need for a business to file a commercial bankruptcy comes at a great cost and few owners make that decision lightly. For many people, however, a bankruptcy can mean a new beginning with a more stable financial future.

Source: Examiner.com, "The real reasons Hostess went bankrupt - National Political Buzz," Ryan Witt, Nov. 17, 2012

No Comments

Leave a comment
Comment Information

Contact Us

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Subscribe to This Blog's Feed Visit Our
Bankruptcy Law Website

Office Location

Law Office of Robert Braverman, LLC

South Jersey
1060 North Kings Highway, Suite 333
Cherry Hill, NJ 08034
Phone: 856-254-2196 
Toll Free: 800-759-0767
Fax: 856-414-1230
Map & Directions

Willingboro Area Office
Law Office of Robert Braverman, LLC

1848 Burlington Mount Holly Rd (Route 541)
Mount Holly, NJ 08060
Phone: 856-254-2196
Toll Free: 800-759-0767
Willingboro Area Office

Center City, Philadelphia
15th Floor
1515 Market Street
Philadelphia, PA 19102
Map & Directions

Northeast Philadelphia
7909 Bustleton Avenue
Philadelphia, PA 19152
Map & Directions

FindLaw Network