For Nostalgia Brands, Bankruptcy Can Have Its Perks

This week, baked goods brand Hostess, the 87-year-old manufacturer of Wonder Bread, Ding Dongs, and the iconic Twinkies, filed for Chapter 11 protection. The company cited strength in competition as a key reason for their financial troubles, as well as a downtick in Americans eating their admittedly fatty treats.

Some might see Hostess filing for bankruptcy as a negative, but in these uncertain times this may actually be a positive from a branding standpoint. The fact that millions around the globe are suddenly exposed to their long lost brand, and reminded of childhood days eating HoHos or Twinkies on the front porch in the summertime, is a PR pro’s dream come true. Although at a great cost, Hostess will apparently reorganize to become a leaner, better positioned company. So all in all, filing for bankruptcy could prove to be surprisingly lucrative.

Think about it. If you don’t  A.) drive a truck for a living, or B.) carelessly indulge in snack treats on a regular basis, when is the last time you enjoyed a Twinkie, Sno Ball, Suzy Q, or Fruit Pie? This is a wonderful opportunity for Hostess to bask in the spotlight and remind people about the iconic brand they once loved.

It would be interesting to see if there is an uptick in sales in the weeks to come. Call me an optimist, but I have a strange feeling that they just might.

Even if a Twinkie can’t survive a nuclear holocaust (as many of us so want to believe), surely it can survive Chapter 11.

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