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Hostess is Going Public Again, Four Years After Bankruptcy

Posted on in Chapter 11

Hostess is Going Public Again, Four Years After Bankruptcy

Hostess has been a favorite snack for Americans young and old since 1919. The company first produced its famous cupcake, a dark chocolate-flavored confection topped by an iconic white icing swirl, nearly a century ago and in the decades since, has followed with classic products like fruit pies, Twinkies, Ding Dongs, Ho Hos, and Sno Balls. It most recently made headlines in 2012 when it filed for Chapter 11 bankruptcy. Not long afterward, Apollo Global Management purchased the snack portion of United States Bakery's business, purchasing the Hostess brand and the right to make all products under its umbrella. Now, four years into the life of this latest iteration of the brand, owners Apollo Global Management and Metropoulos & Co. are taking the company public by selling the majority of the company to Gores Holdings, a private acquisition company run by The Gores Group.

Businesses rarely remain unchanged over the years. Since its inception, Hostess has weathered the events of ten decades, taking the ups and downs that came with them. If you are a business owner, look to Hostess as an example of resilience. 2012 was not the first time the company filed for bankruptcy.

Bankruptcy Can Be a Part of a Revitalization Strategy

Filing for bankruptcy does not mean that your company is hopeless. Rather, it means that your company is carrying more debt than it can reasonably handle and it needs some help with this debt from the court.

What is important with your bankruptcy strategy is that you remain engaged with it through each step. Do not assume that bankruptcy means simply filing some paperwork with the court and allowing them to take over. As the business owner, you need to be an active part of your bankruptcy as much as you are an active part of anything else that impacts your business. Although there are guidelines to reorganizing your company to make it profitable again, it is ultimately up to you to develop an organization strategy, have it accepted, and work with the court to follow it intently and get your business back on track. Every company has unique needs and there is no “one size fits all” bankruptcy. To learn more about your options and feel empowered throughout the bankruptcy process, speak with an experienced bankruptcy lawyer.

Work with an Experienced Libertyville Bankruptcy Attorney

A century-old company like Hostess can have a long history of sales, acquisitions, mergers, and bankruptcies. This is simply the nature of operating a business for so many decades. Whether you are a seasoned business owner or just starting out, it is important that you familiarize yourself with the different debt management and bankruptcy options available to you. To learn more about Chapter 11 and other types of bankruptcy, set up your consultation with a member of our team of experienced bankruptcy attorneys at Newland & Newland, LLP. We serve clients in the North Chicago, Fox Lake, Zion, Winthrop Harbor, Waukegan areas from out our office located in the prestigious 180 North LaSalle street building in Chicago.

(photo courtesy of Larry D. Moore CC BY-SA 3.0)

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