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After baker’s union members strikes at Hostess Brands, Hostess to close

November 16, 2012
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Irving, Texas-based Hostess Brands, maker of Twinkies, Wonder Bread and numerous other well-known baked goods, announced on Friday, Nov. 16, that it is permanently closing all its plants and has requested bankruptcy-court authorization to liquidate the business and sell its assets, including 33 bakeries and 565 distribution centers.

The announcement came after a week after members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) struck several of the company’s locations in response to what the union called the “unilateral imposition of a horrendous contract” rejected by 92% of the membership.

The work stoppage impacted about two-thirds of Hostess’ 36 plants and made it impossible for the company to produce its baked goods.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” said CEO Gregory Rayburn, adding that the company will “promptly” lay off most of its 18,500 employees and focus on “selling its assets to the highest bidders.” The company had filed for bankruptcy in January, its second bankruptcy filing in eight years.

Hostess said the process will include wrapping up operations at its plants, depots, retail outlets and corporate offices, and take about a year. Its inventory will likely be sold to a discounter or big-box store.

Source: The Wall Street Journal,,

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