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
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next
When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
Author: Sean M. Pena
BESS Interconnection: Managing Grid, Cost, and Schedule Risk
For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]
Author: Nicholas Wall
Navigating Director and Officer Liability in Times of Financial Distress
Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Author: Michael Mietlicki
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
Author: Nicholas Wall
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Author: Michael Mietlicki
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Author: Graham Staton
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.