Business & Tech

Another Bankruptcy For Wonder Bread & Hostess

Second try at reorganization by maker of Twinkies, Ho-Ho's and other products that seem out of step with new food health trends.

Hostess Brands, which includes the Wonder Bread label, filed for Chapter 11 bankruptcy last week for the second time in roughly two years, but a company spokesperson told Patch that its San Leandro facilties would be unaffected by the reorganization.

The company runs a on 833 Montague Street, as well as a distribution center. Together thet employ about 15 people, according to company spokesman Erik Halvorson. He said both facilities would renain open and the bankruptcy "will have no immediate impact on these employees."

The same company, formerly called Interstate Bakeries, went into bankrupty in 2004 and emerged in 2009 as Hostess Brands, USA Today reported.

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The paper cited a variety of reasons why the new company has again appealed for court protection from its creditors. These include higher labor and pension costs because it has a unionized workforce and a dramatic shift in eating habits that disfavor well-known products like Twinkies, Ho-Ho's and Wonder Bread.

San Leandro Patch Facebook fan Jacqueline DeCesari remembered the local store from her childhood.

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"Every payday Dad would stop at the Hostess Outlet store . . . and we would load up on bread and snacks," she wrote, wondering if the company would be able to recover from this second bankruptcy. "People have changed their eating habits and are eating healthier," she noted.

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