The manufacturer of Wonder Bread, Twinkies, Ho-Hos, Ding-Dongs, and other infamous treats has filed for Chapter 11 bankruptcy, according to media reports. The bankruptcy is reportedly the result of failed efforts to reach an agreement with company employees on health benefits and pensions, combined with declining profits and mounting debt.

This most recent filing is the second time Hostess Brands Inc. has filed for Chapter 11 bankruptcy in the past three years. Hostess spokespeople say that they do not expect any disruptions in its manufacturing or delivery processes, so consumers should not notice any changes as the company goes through the bankruptcy reorganization process.

Hostess says that it made the decision to file for Chapter 11 after it was unable to reach an agreement with employees regarding pension and health care benefits. In addition, it is currently facing about $860 million in debt, with $981 million in assets and about $1.43 billion in liabilities as of last month.

During the reorganization process, Hostess will reportedly withdraw from its multiemployer pension plans, resolve legacy health and welfare costs, and secure additional capital to update its internal manufacturing and distribution operation systems.

Hostess, which is privately owned, has made multiple failed efforts to sell its businesses to companies such as Smuckers and Kraft. It has reportedly secured about $75 million in debtor-in-possession financing from its current lenders.

Formerly known as Interstate Bakeries Corp., Hostess was founded in 1930. It currently employs some 19,000 people in Nevada and throughout the country, most of whom belong to one of 12 unions. Hostess first filed for bankruptcy in 2004, from which it emerged in 2009.

Source: Reuters, "Hostess returns to bankruptcy over pensions," Jan. 11, 2012