Hostess to close, blames striking workers

AP, By Candice Choi & Tom Murphy, November 16

Hostess Brands says it’s going out of business after striking workers across the country crippled its ability to make its Twinkies, Ding Dongs, Wonder Bread and other snacks.

The company had warned employees that it would file a motion with U.S. Bankruptcy Court Friday seeking permission to shutter its operations and sell assets if plants didn’t resume normal operations by a Thursday evening deadline.

The closing would mean the loss of about 18,500 jobs.

“Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands,” CEO Gregory Rayburn said in a letter to employees posted on the company website.

There’s hope for the Twinkie!

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  • Twinkies-maker Hostess Brands to hold last-ditch talks

    Hostess Brands, which makes Twinkies in the US, has agreed to go to mediation with lenders and unions on Tuesday.

    BBC, November 19

    The company was encouraged to hold more talks by a bankruptcy court, to which it had been expected to apply for permission to liquidate itself.

    Hostess Brands blamed the need to liquidate on a nationwide strike by the Bakery, Confectionery, Tobacco Workers and Grain Millers Union (BCTGM).

    It had sought bankruptcy protection from its creditors in January.

    Monday’s hearing had been expected to be the first step towards selling its well-known brands such as Twinkies, Wonder Bread, Ding Dongs and Ho Hos.

    But the hearing was quickly adjourned until Wednesday as the judge urged the parties to hold private talks to find a solution.

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