Hostess Brands is returning from its impending demise after bankruptcy proceeding, offering insight into the benefits of Chapter 11 business bankruptcy.
Hostess Brands, the American bakery icon, filed for Chapter 11 bankruptcy protection in July 2012 amidst severe labor issues and shifts in food culture. Many thought the company would shut its doors permanently; fans of Ho-Hos Twinkies bought boxes of the baked snacks in bulk as they prepared for the company’s demise. But Hostess Brands made a comeback, and worked to become a company worth $2.3 billion that is forecasted to increase its revenue and net profits over the next few years. So how did Hostess did it? In this blog post we take a look at the upsides of Chapter 11 bankruptcy and how it can help businesses struggling with debt.