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Twinkie maker Hostess Brands to shut down

By Bloomberg News

This article was published November 16, 2012 at 7:09 a.m.

Hostess ceases operations; 18,500 out of work

Hostess, the maker of Twinkies and Wonder Bread, is going out of business, closing plants, laying off its 18,500 workers and putting its brands up for sale.
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Hostess Brands Inc., the maker of Wonder bread and Twinkies, said Friday that it will shut down and liquidate after a strike by members of its bakery workers’ union “crippled” the company’s operations.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” Chief Executive Officer Gregory F. Rayburn said in a statement.

“Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”

The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike last Friday after a bankruptcy judge in White Plains, N.Y., imposed contract concessions that 92 percent of the union’s workers rejected.

Hostess closed three of its 36 plants permanently Monday, blaming the strike.

Hostess said it determined Thursday night that not enough employees had returned to work to restore normal operations. The wind-down will close the remaining 33 bakeries and 565 distribution centers, Hostess said.

See what local Hostess outlet workers and customers have to say here.

Comments on: Twinkie maker Hostess Brands to shut down

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MenLR2 says... November 16, 2012 at 7:35 a.m.

Go Union! .... ... NOT

Now someone else will purchase it all and open back up non-union....

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TheBatt says... November 16, 2012 at 8:02 a.m.

Unions represent one of the biggest threats to our economy. A hundred years ago, unions served a purpose- they helped secure safe working conditions. Then the $ and power did its job and corruption took over.

Now, it's all about extortion. GM was a prime example- the sweetheart deals the union forced the company to accept (GM as well) bankrupted them.

Unions would rather a company shut down putting all their workers out of work, than make concessions that keep the company slice so the emoyees HAVE a JOB.

Consider New Jersey- wracked by widespread damage and power outages, crews from Southern, non-union states traveled hundreds of miles to help.. But we're turned away, not because they were unqualified, but because they were not members of the union.

And of course, it is these same unions who pump $millions into elections in support of Socialists. Imagine that.

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T6 says... November 16, 2012 at 8:02 a.m.

Ohs noes, no more twinkies? All their union had to do was take an 8% pay cut to still have a job. BUT NO !! They weren't satisfied to be working, they were greedy. The new contract cut salaries across the company by 8% in the first year of the five-year agreement. Salaries were then scheduled to bump up 3% in the next three years and 1% in the final year. Real smart, No 8% cut, but 100% out of work!!!!
Oh well Obama will get them a job!!

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mrlloyd says... November 16, 2012 at 8:10 a.m.

way to go union leaders!

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HotSpringsLawyer says... November 16, 2012 at 8:11 a.m.

Posturing.

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HotSpringsLawyer says... November 16, 2012 at 8:17 a.m.

Or maybe the bankers have calculated that they can grab a slightly higher rate of return by busting the union and taking away the jobs of all those employees.

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HalALouyah says... November 16, 2012 at 8:21 a.m.

How much money will the union execs make today compared to their unemployed folks that just lost their jobs? The great thing about our country is we get to make choices and live with the consequences. I hope the 92% is happy!

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rbrooks715 says... November 16, 2012 at 8:24 a.m.

the good news is that you can now work for less. that will help the economy. not. unions secured decent working conditions, over time and a decent wage. bust the unions and you will be working for $5 a day. enjoy.

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rbrooks715 says... November 16, 2012 at 8:25 a.m.

the gop has a plan. you can be replaced by a cheap labor immigrant.

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T6 says... November 16, 2012 at 8:42 a.m.

18,500 people out of a job! No way you can lay this at the republican's feet, as much as you would like to! Remind me again who wants amnesty for illegals to take those jobs moron!!!!! Hey how's that More Hope and More Change working?

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