In these tough economic times, many Ohio businesses need bankruptcy protection to get a fresh start. It's not uncommon for large and well-known companies all over the country to file for bankruptcy. A good example this week is Hostess Brands Inc., the maker of Wonder Bread and Twinkies, which filed for chapter 11 protection.

The company, which operates in 49 states, is making the move for a variety of reasons. It cites increased competition, the tough economy and difficulties with its medical benefits and pension obligations as reasons for the filing.

It's not the first time this has happened. A predecessor company reportedly filed for bankruptcy nearly two years ago in a restructuring that allowed it to emerge from bankruptcy last September.

This time, the company can keep going and maintain routine operations during bankruptcy proceedings thanks to about $75 million in financing from a group of lenders, according to the Sun-Times. Last year, a variety of companies had invested over $60 million in the company to help with its debt.

The company says it hopes to restructure so that it can remain competitive. It also aims to reduce its debt, which is estimated to be over $860 million, as well as renegotiate labor contracts. In the meantime, it will continue to run its outlet stores and bakeries, and will continue to deliver goods through its distribution centers.

Economic times such as these can be tough on businesses, sometimes even more difficult than it is for individuals. Companies like Hostess are wise to weigh their options when seeking debt relief.

Source: Sun-Times, "Hostess Brands files for bankruptcy protection," Jan. 11, 2012