Thank you Obamanomics! No more Twinkies? Hostess goes out of business
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.
"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
Rate This Article
Leave a Comment
More Business & Economics News
- BAILOUT: Treasury, UAW health care trust will sell 50 million shares of GM stock at a $10 BILLION loss
- Great Recession took its toll: Americans missing their wealth
- Mom making more than dad in one in four U.S. homes
- Web developer: Earn $60,000 a year - without college degree or debt
- China, India, Brazil could dominate global investment by 2030
- Unemployment in U.S. comes roaring back - in a big way
- Criminally unfair? Why disgraced Enron CEO Skilling could see freedom sooner than you think
- Berkshire Hathaway Inc. hits first quarter record profit at 51 percent
- China and Japan now hold record amounts of Obama debt
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
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.