The Utah Chapter 11 bankruptcy attorneys at Pearson Butler have learned that Hostess Brands, Inc. is preparing to file for Chapter 11 bankruptcy protection, according to news sources. The hostess is best known for its Twinkies and Wonder Bread products.
The company has over $850 million in debt and employs almost 19,000 workers. The tight money supplies and high labor costs are large factors for considering filing for bankruptcy protection. It filed Chapter 11 in 2004 in an attempt to reduce debt and lower costs. The company hopes that the Chapter 11 bankruptcy filing will enable them to renegotiate labor contracts, reduce benefit costs, and raise additional capital to update production and distribution.
The Chapter 11 attorneys at Pearson Butler consult with business owners throughout Utah whose business operations are likewise struggling. If your Utah business is struggling and you want to know what restructuring options are available, feel free to call our office at (800) 265-2314.