The creators of the oh-so-lovable and addictive baked goodies that Americans have loved for more than 80 years are calling it quits. Hostess Brands, the baked good company that produced Twinkies and Wonder Bread, announced Friday that it is going out of business.
Hostess said it will seek bankruptcy court permission to close its business and sell its assets, “including its iconic brands and facilities. Bakery operations have been suspended at all plants.”
“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,” the company said in a statement.
“We simply do not have the financial resources to survive an ongoing national strike,” Rayburn said in a statement Wednesday. “Therefore, if sufficient employees do not return to work by 5 p.m., EST, on Thursday to restore normal operations, we will be forced to immediately move to liquidate the entire company, which will result in the loss of nearly 18,000 jobs.”
A 5 p.m. deadline came and went without workers returning yesterday.
The strikes began on Nov. 9, when the company imposed a contract that would cut workers’ wages by 8 percent. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) said the contract would also cut benefits by 27 to 32 percent.
The wind down means the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores throughout the United States, the company said.