A few weeks ago, I, along with the rest of the world, heard that Hostess and their unions could not come to a new personnel agreement and would be going bankrupt. The television news stations all started blasting their sensational headline that Twinkies were going the way of the McDonald’s Arch Deluxe, Crystal Pepsi, and the Delorean and would no longer be made. The news showed clips of people in grocery stores with their carts full of all sorts of Hostess products for fear that they would never be able to enjoy them again. The next morning I went to my local convenience store to get a paper and the Hostess stand was empty. They were sold out of Twinkies, Ding Dongs, Wonder Bread, Donettes and Sno Balls!
It makes for a great headline that an iconic product like Twinkies will soon be defunct, but this distorts what will happen after bankruptcy liquidation. As evidenced by the quick sellouts of Twinkies, this is still a product that is very much valued and in demand. I am not aware of all of Hostess’ internal financial struggles, but I’m sure Twinkies can be profitable and that there’s at least a few other companies in the world who believe the same as I do and have the financial clout to do so. During bankruptcy liquidation, the trustee will try to sell all the brands and facilities to get the most value to pay Hostess’ creditors. Some person or group will buy the Twinkies brand and recipe and I’m sure they will start producing and selling millions of Twinkies across the United States. The shoppers who filled their carts will have alleviated their short term cravings, but for the rest of us, rest assured. Twinkies will be populating the grocery shelves again in no time!