Today's news that Hostess (maker of Twinkies) is filing for bankruptcy was greeted with the usual parade of "it's all over" and "they are going to close forever" comments from the media, even those who are supposed to be business experts. Nothing pisses me off more than when "Bankruptcy" is used as a synonym for "Going Out of Business Forever".
Having worked in corporate bankruptcy practice, a company filing for bankruputcy protection is NOT the end of the road. It may be one step down that road, but there are still plenty of things that can change. Many companies leave bankruptcy and go on to continue as successful entities. Not to say that's a guarantee of Hostess turning things around, but there's also no guarantee that they will be closing down forever either.
Will there be some layoffs? Probably. Will there be drama surrounding employee benefits and retirement funds? Most likely. Will investors lose money? Almost certainly.
Do we need to run out and stock up on Twinkies like the Zombie Apocalypse is coming? No.