No more Twinkies, Snowballs, Ho-Hos or Ding Dongs

[2ndgenz28]

No more Twinkies, Snowballs, Ho-Hos or Ding Dongs

Hostess Brands says it is going out of business, closing plants that make Twinkies and Wonder Bread and laying off all of its 18,500 workers.

The Irving, Texas, company says a nationwide worker strike crippled its ability to make and deliver its products at several locations.

Hostess had warned employees that it would file a motion in U.S. Bankruptcy Court to unwind its business and sell assets if plant operations didn't return to normal levels by Thursday evening.

The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.

Hostess, based in Irving, Texas, has already reached a contract agreement with its largest union, the International Brotherhood of Teamsters. But thousands of members in its second-biggest union went on

strike late last week after rejecting in September a contract offer that cut wages and benefits. Officials for the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union say the company stopped contributing to workers' pensions last year.

In an interview with Fox Business, Hostess CEO Gregory Rayburn said many workers have already crossed picket lines this week to go back to work despite warnings by union leadership that they'd be fined.

"The problem is we don't have enough crossing those lines to maintain normal production," said Rayburn, who first joined Hostess earlier this year as a restructuring expert.

Hostess says that production at about a dozen of the company's 33 plants has been seriously affected by the strike. Three plants were closed earlier this week.

A representative for the bakery-workers union did not respond to request for comment. The Teamsters meanwhile are urging the smaller union to hold a secret ballot on whether to continue striking. Citing its financial experts who had access to the company's books, the Teamsters say that Hostess' warning of liquidation is "not an empty threat or a negotiating tactic" but a certain outcome if workers continue striking.

The Teamsters also noted that the strike put its union members in the "horrible position" of deciding whether to cross picket lines.

Hostess, a privately held company, filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade. The company cited increasing pension and medical costs for employees as one of the drivers behind its latest filing. Hostess has argued that workers must make concessions for it to exit bankruptcy and improve its financial position.

The company, founded in 1930, is fighting battles beyond labor costs, however. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating. Hostess also makes Dolly Madison, Drake's and Nature's Pride snacks.

[Overflow]

Holy crap.. R.I.P. Twinkies.

[chevy 3]

My parents have worked for hostess for almost 40 years. I've grown up with the products and will be missing my suizy Qs. Dam

[The Stig]

but but what are we supposed to eat after the nuclear fallout?

[rare991]

zombieland was right..... the future has no twinkies!!!

[its a syn]

They will just move south of the border and rename them El Twinkie,Suzy Senoritas and El Loco dongs!! lol!!

[2ndgenz28]

It’s a hard one to swallow, while everyone else cuts back, some demand more or they won’t work. The article didn’t say but on CNBC this AM the Teamsters had their vote and voted to not strike with them as the bakers demands weren’t enough to risk shutting the company down over so little. But I guess too much yeast rots the brain. 8% pay cut across the board for everyone top down, union or not, with 4% back in the next 5 years sounds like a deal to me.

Keep a job at a long-standing American icon and tighten my belt like everyone else and pull my own weight.

Or shut the place down and look confused when no one wants to hire you before those who would of taken a 50% cut to keep a job, any job.

[MEDISIN]

Prayers go out for those that lost their jobs. Texas Instruments announced yesterday they eliminated 1,700 jobs. Tough times all around. Small business trying to figure out how to afford these new health care mandates, I'm worried about more job cuts to pay for them (including my own).

[11BEE]

Unions! They can destroy any company given enough time.

[Angrybird 12]

I thought at first the title was about banned members of C5.....


Seriously, this is another example of why unions have had their day and its time to disband them. Anytime they would rather shut down a company and put 18,000 people out of work over taking a 8% pay cut and keeping everyone working is completely stupid.

[Tessa]

No more Devil Dogs?

[11BEE]

Originally Posted by Angrybird 12

I thought at first the title was about banned members of C5.....


Seriously, this is another example of why unions have had their day and its time to disband them. Anytime they would rather shut down a company and put 18,000 people out of work over taking a 8% pay cut and keeping everyone working is completely stupid.

COMPLETELY AGREE!!!!!

[Scott 78]

Don't forget the Zinger. My life will be forever dark with out this sweet sweet treat.

[toesuf94]

As a supplier to the baking industry, one other major issue facing Hostess/Sweetheart Baking is the age of the plants they use. Most are over 50 years old and very inefficient. The costs of the labor coupled with much needed machinery updates are the main reasons Hostess is where it is at today. It is pretty sad that a company with assets that are paid off cannot afford to update plants due to the costs of labor overwhelming them in a shrinking market. I am sure the names and products will live on...just in a new plant with up to date equipment that will do the work of these plants with a third or less of the people they have now.