Hostess files for bankruptcy, will maintain normal operations

January 11, 2012 - 08:23 am

NEW YORK (AP) - Hostess Brands Inc., the maker of Twinkies and Wonder Bread, is filing for bankruptcy protection, blaming troubles with its pension and medical benefits obligations, increased competition and tough economic conditions.

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The maker of these iconic packaged cupcakes filed for bankruptcy. (Photo: Wikimedia Commons)

The Chapter 11 filing on Wednesday comes just two years after a predecessor company emerged from bankruptcy proceedings.

The privately held Irving, Texas bakery company says it will be able to maintain routine operations thanks to a $75 million financing commitment from a group of lenders.

Reports had surfaced earlier in the week that the company was planning to make such a filing.

Hostess said that it will look to restructure into a "strong, competitive" company. It will continue to run bakeries, outlet stores and distribution centers and deliver its goods during the process.

Hostess operates in 49 states.

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