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Hostess files for bankruptcy in U.S.

Hostess Brands Inc., the maker of Twinkies and Wonder Bread, is filing for bankruptcy protection in the United States, blaming troubles with its pension and medical benefits obligations, increased competition and tough economic conditions.

Move comes only 2 years after predecessor company emerged from bankruptcy

Cody Stewart of Boise, Ida., bites into a deep-fried Twinkie at the Boardwalk amusement park in Santa Cruz, Calif. on Friday, July 11, 2008. (Eric Risberg/Associated Press)

Hostess Brands Inc., the maker of Twinkies and Wonder Bread, is filing for bankruptcy protection in the United States, blaming troubles with its pension and medical benefits obligations, increased competition and tough economic conditions.

The Chapter 11 filing on Wednesday comes just two years after a predecessor company emerged from bankruptcy proceedings.

The privately held Irving, Tex. bakery company says it will be able to maintain routine operations thanks to a $75-million financing commitment from a group of lenders.

Reports had surfaced earlier in the week that the company was planning to make such a filing.

Hostess said that it will look to restructure into a "strong, competitive" company. It will continue to run bakeries, outlet stores and distribution centres and deliver its goods during the process.

Hostess operates in 49 U.S. states.

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