Horror: Hostess Files For Bankruptcy, Shutters Business
Nanny Bloomberg is probably a happy nanny today as Hostess brings Halloween to mid-November
(WRAL) Hostess Brands Inc. filed for bankruptcy early Friday, announcing it has shuttered operations and ended production of the snack cakes and breads known to generations of Americans.
The Texas-based company said in a statement on its website that it will try to sell its assets, including the iconic Twinkies, Ding Dong and Wonder bread brands. Bakery operations have been suspended at all 36 plants, including one in Rocky Mount, following a weeklong strike by thousands of workers protesting 8 percent wage cuts and benefit concessions.
No more Twinkies, cupcakes (those baseball ones were awesome), cinnamon streusel coffee cakes, Suzy Q’s, donuts, mini muffins, pastries, pies, and sno balls (gross). All gone. And it looks like Hostess really means business, since they even shut down their website. Oh, hey, look
In its statement, Hostess said the strike “crippled the company’s ability to produce and deliver products at multiple facilities.”
“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 will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”
Certainly, Hostess had financial issues to start with, and the strike by the union employees killed the company. So, instead of seeing an 8 percent wage cut and benefit concessions, the workers get a 100% cut.
Despite annual sales of $2.5 billion, the company said its current cost structure was unprofitable, largely because of union wages and pensions.