Thank you Obamanomics! No more Twinkies? Hostess goes out of business

By Catholic Online (NEWS CONSORTIUM)
11/16/2012
Catholic Online (www.catholic.org)

Snack Food Company also made Ding Dongs, Fruit Pies and Wonder Bread

18,000 jobs GONE. There will always be Twinkies. The snack food staple is just too iconic to roll over and die without protest. Chances are, Twinkies will be produced until the Apocalypse, even past the Apocalypse, and they will not be the real Twinkies, but they will be called Twinkies. On a much more serious note - the North Texas-based Hostess Brands, Inc., the company that makes Twinkies - along with a lot of other popular has gone out of business.

Twinkies: creme-filled goodness that has enchanted generations of consumers.

Facebook Delicous MySpace

Twitter Stumble Digg

More Destinations

LOS ANGELES, CA (Catholic Online) - Hostess Brands, Inc. will now liquidate its assets after failing to win back striking workers.

"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," Gregory F. Rayburn, chief executive officer says. "Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders."

One in three of the Hostess' workers are union members who are unhappy about the company's cutbacks during its bankruptcy reorganization.

The Bakery, Confectionery, and Tobacco workers and the Grain Millers International Unions have all worked together to prevent Hostess from moving forward.

Hostess will now seek bankruptcy court permission to sell all of its assets. The company said bakery production has already shut down.

The company owns 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores throughout the United States. Delivery of Hostess products will continue for now. The Hostess Brands retail stores will remain open for "several days," the company said.

"For employees whose jobs will be eliminated, additional information can be found at www.hostessbrands.info. The Web site also contains information for customers and vendors. Most employees who lose their jobs should be eligible for government-provided unemployment benefits," a news release from the company states.

Other hostess foodstuffs include Ding Dongs, Ho-Hos, Fruit Pies and Wonder Bread. The brand also owns Drakes, Dolly Madison, Nature's Pride and Merita.

� 2012, Catholic Online. Distributed by NEWS CONSORTIUM

- - -

Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.

Keywords: Hostess, Twinkies, strike, bankruptcy, liquidation

NEWSLETTERS »

Rate This Article

Was this helpful to you? Very Helpful Somewhat Helpful Not Helpful at All

Would you be interested in more articles like this? Yes, I am Interested No, I am not Interested

Rate Article

1 - 8 of 8 Comments

KarlVDH
6 months ago
Andy, you can lump that in with what I said about "poor and incredibly irresponsible fiscal management." Of course... our Conservative friends will tell us that the highest paid among them DESERVED the raises and bonuses. You and I, however, may see things differently.
Andy
6 months ago
Okay I guess the increase in pay for the CEO and other managers didn't have anything to do with this business going bust.
KarlVDH
6 months ago
OK. Reality check.
Hostess wasn't killed by "Obamanomics." (Though, that's just adorable.) The TRUTH is that this is the SECOND time in a decade that they've gone bankrupt, and let's be real; they DIDN'T accumulate over a billion dollars in debt in the last four years. Grow up. The reality is, they were caught between their employees' unions, and their own hedge funds, and the biggest factor was legacy pensions that pre-date the Obama administration, in some cases, by DECADES. So, sure... it sucks. But Hostess is going away because of their OWN incredibly poor and irresponsible fiscal management, dating back further than most of us can remember. GET A GRIP, folks. Not everything is about politics.
KarlVDH
6 months ago
Know what's going to be really funny? When some other company buys the Hostess brand. Then we'll have all these people buying boxes of Twinkies for hundreds of dollars on E-Bay, (no joke- they are!) and finding out there'll still be Twinkies long into the future.
mike robertson
6 months ago
Oh yes it is the fault of the evil man in the White House. You cannot punish the creation of jobs, while using ugly, divisive class warfare rhetoric, and expect that jobs will not be cr.
lost.

Catholic democrats should note what they are causing with their votes for this "compassionate", "social justice" economic policy. We need low taxes across the board, less government spending and regulation and entitlement reform I am low-income and losing my job in the next month or two. I need for the wealthy to be doing better, not worse. I need for businesses to be doing better, not worse. I need for there to be more wealthy people, not fewer.

Catholic democrats should note I call the man in the White House evil not because of his brutal "social justice" economic policies. Those can be attributed to ignorance. I call him evil because he supports: infanticide (even after a girl survives the attempt to kill her in her mom's womb), equating sodomy with Holy Matrimony, and waging war against the Church under the guise of "health care". God help the poor not to suffer so much from Catholic democrats' "social justice".
vance
7 months ago
Thank you Obama and the Unions for putting 18,500 people out of work. Now they can join the 50 Million people who are now in poverty. Communism is just around the corner.
Rachel
7 months ago
The Thank you Obamanomics! At the top of the post makes no sense. This wasn't Obama's fault, it states in the article it was mismanagement by the company itself. I think I will be getting my information somewhere else.
KarlVDH
7 months ago
What utter nonsense.
This is the wave of the future.
It doesn't MATTER that they've been struggling for years, or that the TRUTH is that the company REFUSED to come to terms with their employees union.
What we'll see now is greedy corporations cutting jobs all over the place, and blaming the Government.

Comments submitted must be civil, remain on-topic and not violate any laws including copyright. We reserve the right to delete any comments which are abusive, inappropriate or not constructive to the discussion.

Though we invite robust discussion, we reserve the right to not publish any comment which denigrates the human person, undermines marriage and the family, or advocates for positions which openly oppose the teaching of the Catholic Church.

This is a supervised forum and the Editors of Catholic Online retain the right to direct it.

We also reserve the right to block any commenter for repeated violations. Your email address is required to post, but it will not be published on the site.

We ask that you NOT post your comment more than once. Catholic Online is growing and our ability to review all comments sometimes results in a delay in their publication.

Name *

Email *

Comment *

Send me important information from Catholic Online and it's partners. See Sample

Post Comment

More Business & Economics News

Featured News

Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.