Industry News

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

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, NBCNews.com, Businessweek.com

Did you enjoy this article? Click here to subscribe to Snack Food & Wholesale Bakery Magazine 

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

POP Gourmet Foods

For the complete story on at POP Gourmet Foods, the 2015 Snack Food & Wholesale Bakery Snack Producer of the Year, see “POP Gourmet’s explosive momentum.”

4/14/15 3:00 pm EDT

Gluten Free: The Rising Growth Market

On Demand Our expert speakers address processing, labeling and food-safety aspects of Gluten-Free and prevailing and emerging trends in Gluten-Free product development specific to grain-based snacks and bakery

Snack Food & Wholesale Bakery Magazine

april cover

2015 April

April's Snack Food & Wholesale Bakery publication features our cover story: "Naturally better at RW Garcia" Plus our Tortilla Trends section!

Table Of Contents Subscribe

Breakfast Poll

Breakfast reportedly is the most important meal of the day. What does your daily breakfast consist of?
View Results Poll Archive

THE SNACK AND BAKERY STORE

organic-production-&-food-q.gif
Organic Production and Food Quality: A Down to Earth Analysis

Effects of Organic Production on Food Quality is the first comprehensive book on how organic production methods influence the safety and quality of foods, based on an unbiased assessment of the latest scientific findings.  The title is a 'must-have' for everyone working within the food industry.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

Facebook IconTwitter IconYoutube IconLinkedIn Icon

The Weekly Mix

Operations Weekly Logo

Written by Snack Food & Wholesale Bakery editors, our Operations Weekly weekly enewsletter provides bakers and snack food manufacturers with up-to-the-minute news, ideas and industry trends.

Sign up today!