Interstate Bakeries Corp., home of the Twinkie, files for bankruptcy

Is America eating healthier?

Consider this: Interstate Bakeries Corp. (IBC) – the company that makes Hostess Twinkies and Wonder Bread – reported a loss of more than $32 million in one month. ONE MONTH!

IBC filed for Chapter 11 bankruptcy protection last year, citing poor sales and increased production costs. But with bankruptcy in the offing and millions of dollars in lost profits, let’s not jump to the conclusion that American consumers have suddenly kicked their decades-long Twinkie habit.

In the four weeks ending November 12, IBC reported revenues of more than $230 million. So even though the company is losing money after all expenses are tallied, quite a few Twinkies are still being consumed, presumably right after lunches that include sandwiches made from the whitest of white breads: Wonder Bread.

Sources:
“Interstate Bakeries Sees Large 1-Month Loss” Associated Press, 12/28/05, abcnews.go.com