The iconic maker of Twinkies, Ding Dongs and Wonder Bread, the staple of 50’s era suburban mothers has asked a court’s permission to shut down all operations after a nationwide union strike crippled its operations.
Since it opened in 1930 Hostess has become a symbol of Americana with brands like Sno Balls, Ho-Hos and the before mentioned Wonder Bread that found their way into lunch boxes across the country for decades.
In a statement, Hostess said its bakery operations have been suspended at all plants and that it would lay off most of its 18,500 workers to focus on selling its assets. It said it has filed a motion with the U.S. Bankruptcy Court seeking permission to close its business and sell its assets, including 33 bakeries and 565 distribution centers.
The company said it would continue to deliver products and its stores would remain open for several days to sell already-baked products.
“The Board of Directors authorized the wind down of Hostess Brands to preserve and maximize the value of the estate after one of the company’s largest unions, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), initiated a nationwide strike that crippled the company’s ability to produce and deliver products at multiple facilities,” Hostess said in the statement.
On Nov. 12, Hostess permanently closed three plants because of the strike. Two days later, the company announced that it would be forced to liquidate if enough workers did not return to restore normal operations by 5 p.m. ET Thursday.
“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” said Gregory F. Rayburn, chief executive officer.
- Hostess Brands to Wind Down Company After BCTGM Union Strike Cripples Operations (prnewswire.com)
- A war of words in the Hostess Brands strike (kansascity.com)
- Is it the end of Twinkies? (wcpo.com)