Hostess Closing Up Shop, The End Of The Twinkie?

By BallerStatus Staff   /   Published 11/17/12

Hostess snacks - Twinkies, Ho Hos, etc

It's the end of an era. Hostess, the snack maker behind products like Twinkies and Wonder Bread, announced this week that they plan to go out of business, lay off its 18,500 workers, and sell off its snack cakes and bread brands.

According to reports, a nationwide strike by its workers crippled its ability to make and deliver its products, in turn, forcing them to shut down. As of press time, the Irving, Texas company has suspended bakery operations at all its factories, and said its stores will remain open for several days to sell already-baked products.

Hostess previously warned employees that it would have to file for bankruptcy and sell assets if plant operations didn't return to normal levels by Thursday evening (November 15). Workers continued to strike, thus, giving the company no other option.

It's the second time the privately held company filed in bankruptcy court in less than a decade.

"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 F. Rayburn said in a letter to employees posted on the company website.

According the Associated Press, thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike last week after rejecting, in September, a contract offer that cut wages and benefits. Hostess said Friday (November 16) that they are unprofitable "under its current cost structure, much of which is determined by union wages and pension costs."

Hostess was founded in 1930, and is behind products like Ding Dongs, Ho Ho's and Home Pride bread, and most notably Wonder Bread and Twinkies. It's up to the future owners to keep these products alive. Stay tuned...

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  • http://www.facebook.com/grampz49 John Jacobs

    goes to show u that all they care about is thier pockets not the ppl that has made the company so hostess closed and sold out how much did they get in thier pocvkets and i also betthey will have a great thankgiving and christmas for thier family butthe employiees will havebean soup and used toys for thier kids and tent to sleep in

  • Mitch Joseph

    According to Wiki, Hostess pulled in a net income of 143 BILLION
    dollars in 2008, with revenue of 2.8 billion. If you can't afford to
    give your workers a decent wage, and a good pension plan, something is
    horribly wrong with the nature of business in this world. How much
    profit does on need to be profitable? How many bonuses do corporate
    execs really need?

    I love Twinkies as much as the next
    guy, but I'm gonna feel sorry for a company that strategically files for
    bankruptcy in order to make sure the guys at the top get a big payday,
    while the lowly workers are punished for protesting.

  • punkyb292003@yahoo.com

    Good job bakers union....now not only you but everyone that works for the company is unemployed. Best of luck to you finding a job in this economy. Don't you think it may have been better to take a paycut....just pure selfishness!!!!!

  • http://www.facebook.com/shaun.tebo Shaun M. Tebo

    According to this article, Hostess is shutting down in 2012. I would feel sorry for any company that pays comparable wages and benefits to employees and is forced to shut down due to the short-sighted greed of union leaders, putting all of the people they're supposed to protect out of work.

  • W Hansen

    when are liberals going to understand they aren't owed a thing? How would Wiki know what the numbers are of a private company and if they were real numbers as you say they would still be in business. I love it when sanctimonious selfish union workers can't compromise and will watch their own incomes disappear.

  • http://www.facebook.com/teri.walter Teri Walter

    Stoners everywhwre heave a collective sigh at the news that Twinkies are to be no more........

  • Cecil

    $143 billion profit in 2008...
    that was before Obama, right???

    Nobody said a word about how much the striking union workers were making. They knew the risk they were taking. Now let the 18,000 union workers look for better jobs...

    Oops, thanks to Obama, there aren't any better jobs!!

  • James Andrews

    It's about time management stood up to the unions and didn't give in. We all overpay for products due to union negotiations and greedy workers. And Americans wonder why so many products go overseas? Perfect example

  • http://www.facebook.com/harry.stone.75 Harry Stone

    Short sighted greed of union workers?!?!?!
    Get your facts straight! just before this announcement, the CEO gave himself a 300% raise from 750,000 to 2.5 MILLION. A STRUGGLING company and he GIVES HIMSELF a 300 percent raise!!!!! Talk about short sighted greed. Oh and only 3 of the company's 33 divisions are union so that's hardly a "nationwide strike." Maybe you should get the whole story before you start blaming hard working honest people.

  • http://www.facebook.com/harry.stone.75 Harry Stone

    Your right, it's the fault of the workers who wanted to prevent ANOTHER drastic pay and benefit cut and not the incompetent CEO with NO BAKED GOODS EXPERIENCE who gave himself a 300 percent raise just before this. Let's make sure the right people are blamed.

  • http://www.facebook.com/dick.gozenya.1 Dick Gozenya

    Best part is, every fat bastard from here to Nantucket went out and bought all the remaining ones and are currently trying to sell them on E-Bay for stupid prices...prices that some fat f-ck out there will surely pay.

  • Terra

    It's pure selfishness to want a decent wage in this economy? To want basic benefits? Don't malign the union for turning down the contract that cut pay while top execs got raises of up to 80%, and that's -after- unions made many concessions and union workers lost jobs the FIRST time Hostess went into chapter 11 in 2004. 2 bankruptcies in less than 10 years? Can we call that chapter 22?

  • Dave

    Let's retrace the events leading up to this.
    - Unions put Obama in office
    - Obama institutes Obamacare
    - Insurance rates increase for everyone
    - Businesses pass the increase onto those who put Obama in office.
    - Unions get mad at their employer instead of Obama and strike against their employer instead of marching on Washington.
    - Strike leads to destruction of employer and loss of job
    - Unions continue to blame their employers.
    CONCLUSION: Unions are reaping what they sowed. Shut up and live with the consequences of your actions.

  • Don

    Most of the Hostess workers voted to take the cuts and keep working. The idiot bakers went on a wild cat strike. The good thing is all of the employees are eligible for unemployment but the bakers. The bakers will now get their just desserts. I would bet money that you are a democrat and that you voted for Obama. Socialism does not work in this country idiot.

  • Richard Felstead

    Never heard of Hostess until this latest news.Also never seen their products in Australia.

  • joe

    I work for the companyfor about 2 years starting 8 years ago. Started in San Francisco and when the first bankruptcy happened I transfer to Sacramento. By far the most money I have ever made making up to 1200 dollars take home a week I feel sorry for some of my old friends house

  • http://twitter.com/leclairm Michael LeClair

    hahhahaa serves those fuckers right. WAWYYY to go unions. Now those workers can put tha ton their resume... 'previous work experience'- yep 'may we contact'- nope i helped make sure they closed. for ever.

    ruin the lives of almost 20k workers. in a time when our economy sucks. gotta love unions.

  • karen stammers

    you can tell all your hostess corperated twinkies that can take their ding dongs and stick them in there ho ho's. sincerly ray , karen stammers central city ky.

  • http://www.facebook.com/angelica.adams.79 Angelica Adams

    Wow, gee thanks guys. Lot of sentimental value in these snacks for people. It is a tough time, businesses have trouble too, and if you want to help them make more money, you have to work to get more done! Sorry ;;

  • http://www.facebook.com/sarah.imam.5 Sarah Imam

    The bakers union rejected a contract that effectively cut their wages and benefits back in September. How can you blame them?

  • susan

    They were already getting over $20 an hour! Probably have a GED. It's like the auto unions getting 60K per year, which is ridiculous for a group of uneducated people to make for factory work!

  • susan

    The unions don't protect people. Its a sham. I pleaded for them to save my job and put my trust in them. All they did was eat donuts and go to meetings. Now people are out of work.

  • http://www.facebook.com/Juggalofamily4life Sami Dalton

    um 2008 was 4 years ago. the economy since then has gotten way worse.. so cnt really base how the company was doing from then to now... ive seen many businesses do great one year and the next plunder cuz they are having to pay out alot to their workers...

  • Greg Meyer

    The Union has once again screwed it up for the employees!! With the way the economy is right now, it's going to be damn hard to find another job. Thanks to the Union these poor people will not have a very Happy Thanksgiving or a Very Merry Christmas!! WAY TO GO UNION!!!!!!!!!! I hope your proud of yourselves!!!!! Good luck to all the people that the Union now has tptally screwed up their lives!!!!!!!!

  • Sandra

    All those that helped slip Barry Soetoro AKA Muslim B. Obama back into office can take credit for this. Cashus Clay changed his name to Mohammed Ali when he went totally Black Muslim and the same is true for Barry Soetoro. The fall of the United States is the plan and now the Holy War has spread...CHRIST is very close to returning is all we can be glad of at this point

  • http://www.facebook.com/profile.php?id=1013433486 Desmond Edwards

    perfect example of the rich getting richer and well you know the rest.

  • JennyL

    143 Billion? Hostess was ranked top 10 of the Fortune 500 companies in 2008? I didn't know Hostess was bigger than Fannie Mae or AT&T.

  • JennyL

    Sick of blaming game. 18,500 people just lost their jobs and both sides just pointing fingers at each other?

  • matthewalva732

    Last time I checked, if an employee didn't show up for 3 days for work, it was grounds for termination. It appears that Hostess duly warned its employees that it would have to close if they didn't resume operations.

    Many companies, especially companies like Hostess, who rely on discretionary income are having difficulties because the household income now is going towards necessities. Please remember, Mitch Joseph, that in 2008, our economy was much better...

    We're seeing this across industries and even with city and state governments. Revenue is declining, therefore costs need to go down. Pensions and salaries that were once doable are now putting organizations into the red.

    I would love to feed, pay, and clothe the world too. But like Hostess, I don't have all the money in the world. Shutting down because there's no money, and now no workers or product is sometimes the only option. The unions should've known that.

    When the Hostess brand is purchased, somebody will gain. It definitely won't be the employees who unionized or the unions who forced a strike. Seems to me like unions need to think a bit more about what they're asking before playing hard ball...

  • Beetch Josef

    Says the guy using wikipedia for his supporting information

  • matthewalva732

    Help me understand. Hostess provided opportunities for their employees. Not the other way around. What I see is a lack of gratitude. Hostess provided a reliable living for their employees for years. And what happens, the employees gather and say they want more, even when there isn't enough to pay the outstanding bills and obligations. They get a "no" response. So they walk off.

    When Hostess doesn't have the manpower to create product everything else falls apart. Some gratitude for the years of prosperity that Hostess provided to their employees. Sometimes we all need to tighten our belts.

    Remember... it's the employees/unions who stopped performing their labors. Hostess didn't abandon them, they abandoned Hostess.

  • http://www.facebook.com/kkendric Kenneth L. Kendrick

    We do not know whom is to blame for this, but I will tell you this, if the company I work for came to the employees and said we are bankrupt, have to restructure and part of the court settlement included cutting wage, for all, I would rather take a pay cut than have NO pay at all.

  • disqus_HkR1Nfx8ZG

    LOL. no if the workers would of stop going on strike then, theyd still have a job. Now, there goes another company moving to Mexico. Out of country job. Yes, im blaming the workers. Shouldn't of stayed on strike that long. Way too go. No hostess now. And whoever said something about wiki, go back ro school. They repeat throughout the years, thats a changable website. You can change what you read on there. Okay? Made my point. Bye(:

  • James

    You must be as stupid as the union lol better to loose 80¢ an hour and have a job than no job.. Bakeries loose fast if not, producing.. Union knew they would close and wouldnt budge . Now thousands without jobs by a few.

  • http://www.facebook.com/ddrottz Diane R Drottz

    It is sad to see such an Icon as this go after all these years, I grew up with Hostess. There are other ways to cut then by taking away from the backbone of your production, your employees' are the one's that put the product on the shelf to sell - Merry Christmas to all affected I wish you all the best and honestly hope for a good outcome for this situation. The goverment bails out the auto industy how about the smaller business that hurt just as much if not more.

  • http://www.facebook.com/samir.shah.92560281 Samir Shah

    Look, it wasn't Hostess saying you deserved a pay cut, it was the market saying you deserved a pay cut. I guess it is too much to expect a union yo yo to have any economics education. It is time we wise up and outlaw unions. Union leaders are just preying on the misinformed workers to just create this artificial layer of unnecessary Union leaders that are really only concerned with making themselves feel important.

  • shane A

    Suspend all operations, fire everyone who hasn't showed for work in three days. post all available positions at the new pay rates, to everyone even those who were just fired. Then re-activate all operations. I've never given anyone a pay cut who didn't quit soon afterwards. however I know of many who came from another company that does the exact same work that paid thousands more annually and after being unemployed for a short time who took a substantially large pay cut and are happy just to have work.

  • disqus_4hvelwrdeH

    Unions were meant to make working conditions better now they made them worse by forcing an icon out of business and you unemployed good move union members.

  • http://www.facebook.com/irene.parker.94 Irene Parker

    Bakers are not to blame. Greedy corporate execs and CEO are. They wanted to cut the pay by 8% and 32% of their pension. Meanwhile the execs and CEO have and are still receiving their bonuses that total in millions.

  • Savio

    Just to make you laugh.....So Twinkies will now be made in China?

  • http://www.facebook.com/greg.tatnall.7 Greg Tatnall

    Can we expect a downsizing of obesity now? No pun intended. Most of hostess products were pure lard and sugar. I din't eat em and won't miss em.

  • GoodbyeAmerica

    Over reaching left leaning government imposing higher burdens to business, the line between survival and bankruptcy getting narrower. Same left leaning government in a circular support matrix with Unions. Glad to see the Unions getting stronger again and breaking the back of more American companies. Keep voting for democrats and progressive rino's who tell you government programs are 'help' the economy. The irony is the same political movements are legalizing marijuana. Bunch of potheads will be missing their twinkies. Welcome to a government run economy ala Cuba, Eastern Europe in the 60's, and the Soviet Union.

  • ChrissieH

    You want to know who the unions protect? Not their workers. Not their members. The unions and their intimidation and their forced union dues protect their fat-cat multimillionaire union bosses. That's who.

  • http://www.facebook.com/kenny.lenart Kenny Bull Lenart

    A Lot of companies are doing that to stay alive - - my company put out a 5% cut but just recently returned everyone to their previous wages plus 2% - - If the employees were smart, they would have dropped the union and kept their union dues in their own pockets - that would have made up for the pay cut

  • charlotte

    so those bakers showed those execs right??? Let's see, bakers no job, no pay, no pension ... execs still have their money plus some. 8% less pay and 32% less in pension is better then ZERO percent because you are out of a job!

  • http://twitter.com/bostonchristian Christian Polleys

    If a business doesn't have enough money to pay reasonable wages to its employees, then it shouldn't be in business. If it has enough money, but chooses to pay exorbitant executive salaries while it's employees suffer, then it STILL shouldn't be in business.

    How is it that so many people put business and profits before humanity?? ? Humanity is what lasts. Profits are short term. When your life comes to an end, you can't take your profits with you, but you could have made the world a better place.

  • ChrissieH

    Look, even the Teamsters Union told the bakers to go back to work. Surely you don't think the Teamsters are part of that group of "greedy corporate execs and CEO's" that you are blaming, do you? I'm sorry, but if even the Teamsters are telling you to shut up and get back to work for your own good, maybe you should listen.

    There simply is no doubt whatsoever among anybody with a brain (including the Teamsters) who is at fault here.

  • ChrissieH

    Look, even the Teamsters Union told the bakers to go back to work. Surely you don't think the Teamsters are part of that group of "greedy corporate execs and CEO's" that you are blaming, do you? I'm sorry, but if even the Teamsters are telling you to shut up and get back to work for your own good, maybe you should listen.

    There simply is no doubt whatsoever among anybody with a brain (including the Teamsters) who is at fault here.

  • liz29

    the bakers union took pay cuts and froze their pay for ten years while three different hedge funds owned and sold the company making millions your are entitled to your own opinions not your own facts