Your New Years Resolution Pushes Bankruptcy on a Chicago Snack Brand Hostess

Hostess brands are house hold names. Wonder Bread, Twinkies, Ho Hos, Ding Dongs and Sno Balls are well known treats that most Americans are familiar with. The problem is they are no longer buying the iconic Chicago snacks.

The Hostess company is 87 years old. The brand has been well built and brand awareness is still high. A new snack company has not come out with a better product that people are buying instead. It's not competition that's causing problems for Hostess but rather that Americans are realizing the snacks are not healthy for them and they are no longer buying the treats.

Wonder Bread has worked to change their product to suit healthy American diets by adding wheat bread and promoting the health benefits of eating wheat. Unfortunately it appears that this is not enough and the company is working with Chicago bankruptcy lawyers to help them out of debt.

According to an article in the Chicago Sun Times only 36% of Americans indulged on white bread in their homes. This statistic is down from 54% in 2000.

Twinkies which were originally created in Chicago pack a whopping 150 calories each and nearly 5 grams of fat. This nutrition fact is too hard to sneak by label reading consumers looking to improve their diets.

While Hostess heads for bankruptcy in Chicago, sandwich company Quiznos is trying to avoid filing chapter 11 by working with creditors to restructure the business. So far the negotiations have been successful and if everything goes as planned the business will be able to avoid bankruptcy court and pay down their $875 million in debts through a agreed upon payment plan.

Chicago bankruptcy lawyers will tell you that a big part of filing bankruptcy is determining what your future holds. If Quiznos can come up with a successful payment plan there is a good chance the company can get out of debt and back on their feet. In Chicago, bankruptcy lawyers are familiar with Hostess as a city staple. However if they cannot modify their brand to keep up with the changing lifestyles of health conscious Americans then filing bankruptcy may be a temporary fix.

This will be Hostess's second bankruptcy filing in 10 years. This is not a good sign for the future of the company.

Chang and Carlin
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