16 Nov 2012
The makers of Twinkies, miniature donuts, Ding Dong and other favorite snacks, the Hostess brand is shuttering after striking workers across the nation crippled production.
Earlier the company warned its 18.500 workers that the company would be forced to pull-down the shutters on Friday if the workers did not return to work. But by Thursday night there was no-deal.
The CEO of Hostess Brands, Greogory Rayburn told CNBC on Friday that it’s too late even the workers returned to work on Friday.
He said that he hopeful that someone will come forward to buy the $ 2.5 Billion dollar company.
Operations at 33 factories were suspended as of Friday. But the retail outlets would be opened until further notice. In January this year the company filed for Chapter 11 bankruptcy. The workers launched strike after negotiations between Hostess management and Bakers union failed. In September this year Hostess said that it planned to slash the wages and benefits of employees to keep the overheads low.
Rayburn also told the CNBC that the union members misled the workers by insisting that there was a buyer on the wings to purchase the company.
Hostess Brands, Inc.—founded as Interstate Bakeries Corporation (IBC) in 1930—was the largest wholesale baker and distributor of bakery products in the United States, and is the owner of the Hostess, Wonder Bread, Nature’s Pride, Dolly Madison, Butternut Breads, and Drake’s brands. For many years it was based at 12 East Armour Boulevard, Kansas City, Missouri. In 2009, after it emerged from a 2004 bankruptcy, the name was changed to Hostess Brands, Inc., and the headquarters moved to Irving, Texas. [2] Hostess Brands, Inc. sought bankruptcy protection under Chapter 11, Title 11, United States Code again in 2012. [3]
On November 16, 2012, management announced operations at all plants have ceased. Two days earlier it warned it would liquidate unless the bakers, who were striking in protest against a new contract, imposed in bankruptcy court, returned to work. [4] Management intends to sell all assets and lay off 18,500 employees, Source Wikipedia
The CEO Rayburn on a news release published on the website said “all will lose their jobs and some sooner than others’”
The company began operations in 1930 in Kansas.
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