"Twinkie maker Hostess files for bankrutcy--this not a good sign."

Via Northern Blogger

No, indeed.

Rest easy, Twinkie lovers: Hostess Brands, the storied American manufacturer of snack cakes, filed for Chapter 11 bankruptcy Wednesday, but said it will continue to churn out Ho Hos, Ding Dongs and other iconic products.

"Throughout the proceeding, we're going to operate business as normal," said Hostess spokesman Erik Halvorson. "They'll keep making Twinkies."

The company, based in Irving, Texas, filed for Chapter 11 protection in U.S. Bankruptcy Court in New York. But Halvorson said the company does not plan to lay off any of its employees or close any plants. So the CupCakes and Sno Balls will keep on coming.

The company has about 19,000 full-time and part-time employees, including 10,413 hourly workers and 8,436 salaried workers, according to a court filing. About 83% of the employees are union members.

The company said that it pays about $63.2 million to its employees per pay period, and that it currently owes them $21 million for services rendered.

In its bankruptcy filing, the privately held company said that it owes more than $1 billion to creditors. The debt is spread out among a vast number of creditors -- between 50,000 and 100,000, the company said.

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