Hostess Brands (Bankruptcy)

Food Manufacturing · Founded 1930

Hostess' 2012 bankruptcy and temporary death of Twinkies demonstrates how legacy labor costs can kill even beloved brands. Eight bankruptcies over 80 years couldn't resolve fundamental cost structure problems. Like an organism carrying parasites across generations, Hostess passed pension obligations from one restructuring to the next until final liquidation. Private equity rescue stripped costs; Twinkies returned, workers didn't.

Key Facts

1930
Founded