Red Bluff Daily News

January 12, 2012

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8A Daily News – Thursday, January 12, 2012 Twinkies maker Hostess seeks bankruptcy protection NEW YORK (AP) — The maker of Twinkies, Sno Balls and Wonder Bread is trying to lose the fat. Hostess Brands is hoping to cut its high costs as it heads back into bankruptcy protection for the sec- ond time in less than a decade. Hostess has enough cash to keep stores stocked with its Ding Dongs, Ho Hos and other snacks for now as it battles rising labor costs and increased competition. But longer term, the 87-year-old company has a bigger problem: health-conscious Americans favor yogurt and energy bars over the dessert cakes and white bread they devoured 30 years ago. Last year, 36 percent of Amer- icans ate white bread in their homes, down from 54 percent in 2000, according to NPD Group. Meanwhile, about 54 percent ate wheat bread, up from 43 percent in 2000. Consumption of healthy snacks is growing, too. About 32 percent of Americans ate yogurt at least once in two weeks in 2011, for instance, up from 18 percent in 2000. ''We're less likely to be snack- ing on items that we shouldn't be snacking on,'' said Harry Balzer, chief industry analyst for The NPD Group, a consumer market- ing research firm. Hostess, which is a privately held, doesn't disclose sales fig- ures. But Nyeyoka Bryan, 26, is proof that the company has lost at least some of its hardcore fans. Bryan said she stopped eating Twinkies at about age 16 because she decided they were unhealthy. Still, the student who was sipping a fruit smoothie in the snack aisle of a Duane Reade store in New CUSTOM WE HAVE MOVED TO 333 S. Main St. Suite H Refurbished HP Dual Core Laptop $ 3600n Color Laser Printer $ 225 200 We carry Copy & Printer Supplies 20% off with this ad Labor, Parts & Accessories 530-690-3331 plants to keep pace with customer needs. ''This company has tremen- dous potential if we can remove the barriers to success,'' Driscoll said. The Teamsters Union, which represents about 7,500 of Host- ess' delivery drivers and mer- chandisers, said in a statement on Wednesday that it is also commit- ted to working toward a solution. The company's filing comes nearly three years after its prede- cessor emerged from bankruptcy proceedings. That company, called Interstate Bakeries and based in Kansas City, Mo., filed for bankruptcy protection in 2004 and changed its name to Hostess Brands after it emerged in 2009. Hostess said Wednesday that York on Wednesday afternoon said she'd be sad if Twinkies dis- appeared. ''They've been around a long time,'' she said. To be sure, Hostess' snacks don't neatly fit into the U.S. trend toward a healthier lifestyle that includes a diet rich in whole wheat foods, fruits and vegetables. For instance, Twinkies, a snack cake with a mysterious cream fill- ing that epitomizes empty calo- ries, has 150 calories and 4.5 grams of fat. Meanwhile, a Ding Dong chocolate cake with filling has 368 calories and 19.4 grams of fat. Hostess has introduced some healthier options in recent years, including 100-calorie packs of cupcakes and Twinkies. The com- pany also is working on lowering James W. Tysinger, Jr. M.D. Eye Physician & Surgeon Fellow American Academy of Ophthalmology We accept Medical, Medicare & most Insurances Office Hours: Tues-Wed-Thurs 8am-4:30pm Mon & Fri 1pm-4:30pm For Emergencies, After Hours, Week-ends, Call 530-567-5001 345 Hickory St. Red Bluff Tel: (530) 529-4733 Fax: (530) 529-1114 sodium in some products. But those efforts haven't helped the company's junk-food status much. ''The iconic status of Twinkies is partly this perception that there's nothing real in it,'' said Ken Albala, professor of history at the University of the Pacific, in Stockton, Calif., who specializes in food history. ''It's this cake filled with an unidentifiable sug- ary cream filling that never goes bad.'' too. Hostess has other problems, In Hostess' Chapter 11 filing on Wednesday, the company said its rivals have combined and expanded their reach, heightening competition in the snack space. Hostess' competitors range from Bimbo Bakeries, which makes Entenmann's baked goods, and The North State's premier supplier of stoves STOVE JUNCTION The Over 25 years of experience FINDERS EPA approved stoves are EXEMPT from no burn days! Did you know... 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Hostess did not announce lay- offs but spokesman Lance Ignon said Wednesday that the company will make future decisions ''in the best interest of the company.'' CEO Brian Driscoll said Host- ess is working to reach a consen- sual agreement with its unions to modify its collective bargaining agreements. Hostess also hopes to modernize its systems, fleets and Georgia Seeliger's Needle Arts Estate Sale & Swap Meet Feb. 4TH Canned Food Donation 623 Main Street Admission: Vendors welcome 529-3298 Plus Park on Pine St. • 8 to 4 PM its previous efforts to change, including the prior Chapter 11, were insufficient. Under its most recent bankruptcy filing, it is looking to restructure into a ''strong, competitive'' company. In its filing with the U.S. Bank- ruptcy Court for the Southern District of New York, Hostess listed about $860 million in debt. The company's biggest unsecured creditor is the Bakery & Confec- tionary Union & Industry Interna- tional Pension Fund, which it owes about $944.2 million. In the filing, Hostess also listed its estimated assets between $500 million and $1 billion and its esti- mated liabilities at more than $1 billion. The Irving, Texas-based com- pany said that it will be able to maintain routine operations thanks to a $75 million financing commitment from a group of lenders led by Silver Point Capital LP. 2006 FORD RANGER SPORT YELLOW MELLOW BEAUTY! SUPER SHARP, 5 SPD, MULTI CD, BED LINER. #A11681 $7,777 2007 GMC ENVOY DENALLI THIS BEAUTY IS 1 OWNER WITH 12,000 MILES IN MINT COND. LEATHER, MOON ROOF & THE WORKS.#162775 CALL! 2003 RAV4 4X4 LOTS OF EQUIP, GAS SAVER #090323 $11,887 2008 FORD FUSION SE MOON ROOF, LOW MILES, 6 CYL. 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