Hostess Closing Up Shop, The End Of The Twinkie?

By Staff  |  11/17/2012

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...