With more than $1 billion owed to creditors and $21 million to many of the company’s 19,000 employees, snack cake giant Hostess had to file for Chapter 11 bankruptcy this morning.
Fortunately, the filing won’t impact cake production. “Throughout the proceeding, we’re going to operate business as normal,” said Erik Halvorson. “They’ll keep making Twinkies.”
It’s a notable mention that this is not their first time filing chapter 11
I obviously don’t understand how business and finance works. They owe 1 billion dollars+ and they can still continue to produce product? How is that possible? I file for bankruptcy and my credit is ruined and I’m stuck with just the cash I can make week to week. (Note: I just paid off my debt so this is a hypothetical situation).