Twinkies: Likely to Survive Despite Hostess Shut Down

Hostess' iconic golden-cream filled cakes, Twinkies, are reportedly going to survive despite the company being sold in bankruptcy.

The company announced that because of a number of issues including impending debt and rising cost of labor that they could no longer keep the company and has asked the bankruptcy court for permission to sell its assets and shut down shop.

The Associated Press reported that Hostess still brings in $2.5 billion in revenue per year and that other companies have expressed interest in buying pieces of the company. Twinkies, the company's arguable, most famous treat, brought in $68 billion this year so far, reported the AP earlier this month.

Hostess spokesman Erik Halvorson told CNN Money that throughout the bankruptcy proceedings the company will work as normal. He added, "They'll keep making Twinkies."

"In its bankruptcy filing, the privately held company said that it owes more than $1 billion to creditors. The debt is spread out among a vast number of creditors -- between 50,000 and 100,000, the company said," reports CNN Money.

Despite the bankruptcy, Twinkies could still very likely continue to thrive. John Pottow a Law School professor at the University of Michigan who specializes in Bankruptcy said to the AP,"There's a huge amount of goodwill with the commercial brand name. It's quite conceivable that they can sell the name and recipe for Twinkies to a company that wants to make them."

The AP reported Joshua Scherer of Perella Weinberg Partners saying that buyers were "serious" and that "the longer these brands are off the shelves, the less they are going to be valued."

Hostess is also the maker of products like Wonder Bread and Ho Hos and Ding Dongs.