Hostess Filing for Bankruptcy

Interstate Bakeries Corporation / AP Photo

Twinkies may be indestructible, but Hostess is having some trouble. Hostess Brands Inc. is preparing to file for Chapter 11 bankruptcy protection, sources tell The Wall Street Journal, possibly as soon as this week. The company carries more than $860 million in debt and owes more than $50 million to vendors, plus it's under pressure from rising prices for sugar and other ingredients. It would be the second restructuring for the company in the last several years. The company spent four years in bankruptcy court beginning in 2004, but it has continued to struggle even after restructuring. When it files for bankruptcy, Hostess will likely try to reduce debt and renegotiate labor contracts.