NEW YORK (
, the seller of Wonder Bread, Ding Dongs, Ho Ho's, Sno Balls, Drakes Cakes and Twinkies, is preparing to file for bankruptcy as soon as this week, according to
The Wall Street Journal
If a filing were to occur, it wouldn't be the first trip through the bankruptcy process for the company, which has made deserts since the 1930s. In 2004, Hostess went bankrupt and stayed in administration for four years until it re-emerged as Hostess Brands in 2009.
Burdened by its liabilities, Hostess reportedly suspended payments on union pensions in December has been struggling to make interest payments on a $700 million loan,
The New York Post
The company, which is owned by private equity firm
, is struggling to meet interest payments as investors seek concessions from its near 20,000 unionized employees, according to the
Hostess Brands carries $860 million in debt and millions in additional vendor payments, which jeopardize its $2.5 billion bakeries and deserts-selling businesses.
As Hostess Brands emerged from a 2004 bankruptcy, it fought a 2007 bid from Mexican baked goods giant
and Ron Burkle of the
It exited bankruptcy in 2009 in a deal financed by Ripplewood Holdings, which received a controlling stake in the company for a $130 million capital commitment.
(GE - Get Report)
GE Capital division, Monarch Alternative Capital and Silver Point Capital also provided hundreds of millions in rescue financing, the
reports. With a bankruptcy imminent, the company is now arranging $75 million in debtor-in-possession financing from its lenders, according to the
ranked it the 167 biggest private company in the U.S. and at the time of its bankruptcy exit, the firm staffed 22,000 employees, according to a press release.