Hostess Brands files for Chapter 11 bankruptcy

NEW YORK — Snack food maker Hostess Brands filed for Chapter 11 protection in U.S. Bankruptcy Court in New York on Wednesday, CNNMoney reported.

In the filing, the Irving, Texas-based company said it owes more than $1 billion to creditors and $21 million to employees for services rendered.

"The employees have been witness to the closing or sale of several operations within the debtors'' business as well as company-wide layoffs or reductions in force," the document said. "The increase pressures on the employees, together with layoffs and general concern about the welfare of the debtors, have led to a decline in employee morale."