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Hostess emerges from bankruptcy; Twinkies are back

They're back.

Twinkies, arguably New Hampshire's favorite sugary junk food, disappeared from shelves this winter after the company that makes the snack cakes, Hostess Brands, went bankrupt.

Now, Twinkies are back in stores because Hostess was purchased by Apollo Global Management and Metropoulos & Co. after it reorganized in bankruptcy. Those two companies have a sterling track record when it comes to rehabilitating floundering companies.

Although it may seem a little silly to read too much into the return of Twinkies, it isn't wrong to consider their resurrection proof that even when things look their darkest during a bankruptcy, that metaphorical light at the end of the tunnel still exists.

Hostess made popular items like Wonder Bread and Ding Dongs, but it was beset by "legacy costs" (such as pensions) and issues with its unionized workforce. Although it struggled mightily, it could not overcome its unfavorable financial situation.

Afer reorganizing in bankruptcy, though, Hostess has emerged as a leaner, more modern company. Since the popularity of its products was never in serious doubt, it will be very interesting to see what the future holds for Hostess.

For many businesses, bankruptcy is a chance to wipe the slate clean and start afresh, which is an opportunity they badly need. Sometimes, financial pressures get to a point where it is simply impossible to get out from under them.

If you are interested in seeing what options exist for your business, a conversation with a bankruptcy attorney might prove to be very informative for you.

Source: Associated Press, "'New' Twinkies weigh less, have fewer calories," Candace Choie, July 15, 2013

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