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.

Sound familiar?

Crossed at Pirate’s Cove. Follow me on Twitter @WilliamTeach.

Trending Today

Related Articles

17

Monday Funnies: Obama May Focus On Deficit Over The Next Two Years

One has to wonder whether this trial balloon comes from the administration, or the Associated Press. Either way, if Obama

3

WHAT! Lefty Canuck Slams Jenna Jameson

Jenna Jameson’s epic smackdown of left-wing trolls on twitter has gone international. : The vicious proggie twitter assault began when she

7

The High Cost of Other People Living Beyond Their Means

At least we’ve learned our lesson, and the Fanny/Freddy debacle that caused the economy to collapse in 2008 has been