Hostess Brands Inc, the maker of the iconic Twinkies snack cake, will square off in a bankruptcy court on Monday against an agent of the U.S. Justice Department, who says the wind-down plan is too generous to management.
The U.S. Trustee, an agent of the U.S. Department of Justice who oversees bankruptcy cases, said in court documents it is opposed to the wind-down plan because Hostess plans improper bonuses to company insiders.
The 82-year-old Hostess wants permission to pay senior management a bonus of up to 75 percent of their annual pay so they will stay on and help wind-down the business.
Ding Dongs hold a special place in my heart. My best friend growing up in Canada was an American. Whenever her family would travel to New York they would bring numerous boxes of Ring Dings back with them and keep them in the freezer. Sure, there were lots of similar sandwich cakes in the great white north, but none had a hechsher. If we were particularly well behaved, we would be allowed to take one from the coveted stash. The memory of the feeling of the frozen squishy cake and its filling, still brings a smile to my face.
With the announcement of the closure of the Hostess brand, the memories of Ring Dings resurfaced. I found myself mulling the loss of an item I have not eaten since before my bat mitzvah. The public discussion of the closure of the Hostess plants centers around the financial challenges the company faced as it sought to restructure. But even without the current financial downturn, the snack cakes may be part of the shifting American foodways.