Yesterday the bankruptcy of the Hostess Company was announced. In case you’re unaware, Hostess is the maker of HoHos Ring Dings, Twinkies and other fine edibles. I have heard stories of runs on grocery stores and 7-Elevens by panicked consumers of junk foods who want to stock up on their favorite snacks.

There is no reason to panic. If Twinkies and HoHos are selling, they will not disappear with the bankruptcy. The situation is similar to that of the airlines, all of which seem to declare bankruptcy every few years. Their operating costs, union contracts, and debts get restructured, while their flight schedules and services remain uninterrupted.

Hostess will restructure. They might have to close some unprofitable plants or sell off some assets. Eventually they will come out of bankruptcy stronger than ever. The Twinnkie will live on. Long live the Twinkie!

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