IRVING, Texas—Hostess Brands, Inc., and its five subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. The company will continue operating its bakeries, outlet stores and distribution centers and delivering its Wonder®, Merita® and Butternut® breads; Drake’s®, Twinkies® and Hostess® cakes products to its customers nationwide during the proceedings.
The Chapter 11 filing will provide Hostess Brands the opportunity to re-engineer the company and, upon emergence, to execute a business plan that will transform Hostess Brands into a competitive wholesale baker that can provide employment on competitive terms and continue to efficiently service all of its customers. The business plan is designed to create a sustainable cost structure with competitive employee benefit plans while allowing the company to invest in modern systems, fleets and facilities to meet changing customer needs and consumer tastes.
Hostess also received a commitment for $75 million in debtor-in-possession (DIP) financing from a group of its existing first-lien lenders, led by Silver Point Capital, L.P. The financing will enable the company to continue routine operations, while undertaking a comprehensive financial and operational restructuring to transform it into a strong, competitive company.
“Hostess has some of our industry's most powerful and resilient brands," said President and CEO Brian Driscoll. “With generations of loyal consumers, numerous iconic products and a talented and experienced workforce, Hostess Brands has tremendous inherent strengths to build upon."
