The maker of Twinkies snacks and Wonder Bread, Hostess Inc., may be filing for Chapter 11 bankruptcy protection some time this week. If this does occur, it will be the second time that the company has done major restructuring in recent years.

The private company, based in Irving, Texas, now has a debt of $860 million which is due to rising costs ingredients such as flour and sugar, as well as a high cost of labor. Vendors are owed more than $50 million and many of them have been demanding some payment.

Since the company has sought bankruptcy protection before, they may now have to file for a different type. Another issue that has caused distress for Hostess is that people have switched to whole grain, healthier bread rather than white bread. 

If you or your business is in a similar position and are considering your financial options, this can be a stressful and difficult time. Contact the Arizona bankruptcy lawyers of the Harmon Law Office today by calling 480-829-0494.