NEWS

Twinkie-maker Hostess mulls bankruptcy filing

01/10/2012 10:10 EST | Updated 03/11/2012 05:12 EDT

Hostess Brands Inc., the makers of Wonder Bread and Twinkies, is preparing to file for bankruptcy protection in the United States, a report claimed Tuesday.

Citing unnamed sources familiar with the matter, the Wall Street Journal reported Tuesday the food conglomerate will make the move within days.

Hostess, which previously underwent bankruptcy proceedings between 2004 and 2009, did not immediately respond to a request for comment by CBC News.

The Irving, Texas-based company has more than 19,000 workers and operates in 49 states and Canada, generating about $2 billion US in annual sales.

The report claims the company is facing a cash crunch with more than $860 million in debt, high labour costs and rising prices for ingredients such as wheat, sugar and dairy.

At the time of its previous bankruptcy filing, Hostess was just a brand name while the parent firm was called Interstate Bakeries, based in Kansas City, Mo. But part of the turnaround plan was rebranding the entire firm in 2009 around the recognizable Hostess name.

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