Hostess Brands To Shut Down For Good
Looks like Hostess no longer has the goods to keep afloat.
The parent company of such baked treats as Twinkies and Wonder Bread is asking a federal bankruptcy court to shut down its operations after bakers went on a strike protesting a new contract imposed on them, CNN reports. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union represents around 5,000 Hostess employees currently on strike.
“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” CEO Gregory Rayburn said in a statement.
News of the company’s bankruptcy means that nearly 18,500 workers will lose their jobs as well as 33 bakeries, 565 distribution centers nationwide and 570 outlet stores being shut down. Though the company will be selling its assets to the highest bidder in liquidation, it could mean new shelf-life for its products. In a letter to its network of stores, Hostess could not say when the sales would be taking place.
Regardless, the transfer of ownership will not mean renewed jobs for its workers. “The industry has overcapacity. We’re overcapacity. Our rivals are overcapacity,” said Rayburn in an interview on CNBC. When asked if the Bakers’ Union strike were to end and employees agreed to return to work, he responded, “Too late.”
Hostess is currently waiting for approval from the bankruptcy court before they liquidating their assets. The company said production at all of its bakeries has ceased Friday, and that stores will no longer receive Hostess Brands’ products while those already in stores will remain open for another week.
Better grab your Ding Dongs while supplies last!