Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Twinkies Make Their Way Back to the Shelves as the Brand Seeks to Reinvent Itself
Author: Joel R. Glucksman
Date: July 15, 2013
Key Contacts
Back
If you’re a regular reader, you know I always post on Tuesday. However, I wanted to post this article today because Hostess Twinkies made their way back on the shelves this morning. Everyone at the office is excited about this; perhaps it calls for an office-wide get together featuring a few boxes of our old friends.
The announcement that America’s beloved Twinkies brand would make its way back to the shelves this summer after its previous owners filed for bankruptcy law protection has been met with jubilation from Twinkie lovers across the country. Now, as Twinkies return to retailers, the new owners of the popular brand seeks to reinvent itself with more efficiency and strategy to avoid falling into financial disarray.
The iconic Hostess brand was purchased by Apollo Global Management and Metropoulos & Co. for $410 million after its former owners filed for bankruptcy in January 2012. Company owner C. Dean Metropoulos said in his first interview that the new Hostess brand – which is now free of union contracts and $1.3 billion in liabilities that led to the previous company’s demise – will take on an aggressive growth plan to lower the risk of future bankruptcy filings.
He explained that the union rules and complicated policies of the previous Hostess organization limited distribution of Twinkies to only 50,000 of the 150,000 convenience stores in the U.S., according to the Wall Street Journal. In addition, certain regulations – such as a requirement that breads and cakes be delivered in separate trucks – also tacked on more costs and led to unsustainable business operations.
The new Hostess will rely on third-party drivers, rather than unionized workers, to conduct operations and product distribution, a move that will allow the company to deliver Twinkies to up to 110,000 convenience stores by the end of 2013.
“Wherever you find a Snickers bar or M&Ms, you should be able to find a Twinkie,” Metropoulos told the Journal.
The snacks, which officially returned to shelves today, July 15, will also have a longer shelf life this time around, as the previous owner introduced new Twinkies that last 45 days, rather than 26 days, prior to its bankruptcy liquidation and asset sales.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.