NEW YORK — The maker of Twinkies, Sno Balls and Wonder Bread is trying to lose the fat.
Hostess Brands is hoping to cut costs as it heads into bankruptcy protection for the second time in almost eight years.
Hostess has enough cash to keep stores stocked with its Ding Dongs, Ho Hos and other snacks for now as it battles rising labor costs and increased competition. But longer term, the 87-year-old company has a bigger problem: health-conscious Americans favor yogurt and energy bars over the dessert cakes and white bread they devoured 30 years ago.
“It’s got to cost a fortune to make one of those little things, and I don’t think the price of them has gone up in 10 years,” said Jack House, 55, of Jack’s Corndogs & Confections, which sells deep-fried Twinkies and other treats at the National Western Stock Show & Rodeo in Denver.
Hostess, which is privately held, doesn’t disclose sales figures.
In Hostess’ Chapter 11 filing Wednesday, the company said its rivals have combined and expanded their reach, heightening competition in the snack space.
Hostess employees are unionized, while most of its competitors’ aren’t. As a result, Hostess, which employs 240 people in Colorado, has high pension and medical benefit costs. The company has 19,000 employees and operates in 48 states.
Hostess did not announce layoffs, but spokesman Lance Ignon said Wednesday it will make future decisions “in the best interest of the company.”
Denver Post staff and wire reports
