Twinkies may be able to survive a Nuclear bomb, but they can’t survive today’s economic times. Hostess is preparing for Chapter 11 bankruptcy protection. Hostess blames the increase in competition and difficult economic circumstances, pointing to the high labor cost they’ve endured. If this is something you can relate to, there is hope. We discuss some preventative answers below.
Hostess is listing assets between $500 million and $1 billion and estimates liabilities more than $1 billion. Reportedly, the company finds themselves more than $800 million dollars in debt.
Don’t worry and run to the nearest grocery store to stock up on your supply. The company has assured the public they will remain in production. Cue the celebration music and confetti to fall.
Hostess will work to restructure their business model into a competitive company and looks to create a sustainable cost structure. The company believe’s it can reach its potential and grow to be competitive again.
Now that you know you can still get twinkles, let’s talk about your business. Whether you are a public or private company it may be wise to consider Directors and Officers liability coverage. Coverage will provide financial protection in the event of a lawsuit against your company on the grounds of failure to perform expected duties.
If your company has a board of directors, this is often a requirement. Investors and members of your board of directors will not be willing to risk their assets without this coverage. If your company is expecting growth, this is not something to overlook.
Contact our GA insurance company for more information and we can discuss how Directors and Officers liability coverage can be wise to add to your policy.
We are always happy to answer questions and further explain insurance to our clients. The only thing that makes us happier is helping our clients when we have Twinkies!