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Are you prepared for life without Twinkies and Wonder Bread?

http://money.cnn.com/2012/11/16/news/companies/hostess-closing/

Hostess Brands closing for goodNEW YORK (CNNMoney) -- Hostess Brands -- the maker of such iconic baked goods as Twinkies, Devil Dogs and Wonder Bread -- announced Friday that it is asking a federal bankruptcy court for permission to close its operations, blaming a strike by bakers protesting a new contract imposed on them.

The closing will result in Hostess' nearly 18,500 workers losing their jobs as the company shuts 33 bakeries and 565 distribution centers nationwide. The bakers' union represents around 5,000.

Hostess will move to sell its assets to the highest bidder. That could mean new life for some of its most popular products, which could be scooped up at auction and attached to products from other companies.

"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 in a statement.

The company had given a 5 p.m. ET deadline for the bakers to return to work or face a shutdown of the company. The unions at Hostess could not be reached immediately for comment on the decision.

Hostess filed for bankruptcy in January, its second trip to bankruptcy court since 2004. It previously emerged from restructuring in 2009 after a four-and-a-half year process.

The company is now controlled by a group of investment firms including hedge funds Silver Point Capital and Monarch Alternative Capital.

In September, one of its major unions, the International Brotherhood of Teamsters, voted narrowly to accept a new contract with reduced wages and benefits. The bakers' union rejected the deal, however, prompting Hostess management to secure permission from a bankruptcy court to force a new concession contract on workers.

The new contract cut salaries across the company by 8% in the first year of the five-year agreement. Salaries were then scheduled to bump up 3% in the next three years and 1% in the final year.

Hostess also reduced its pension obligations and its contribution to the employees' health care plan. In exchange, the company offered concessions, including a 25% equity stake for workers and the inclusion of two union representatives on an eight-member board of directors.

Answer Question
 
NotPanicking

Asked by NotPanicking at 7:43 AM on Nov. 16, 2012 in Politics & Current Events

Level 51 (420,483 Credits)
Answers (24)
  • Yeah. We have a factory nearby. So sad for their jobs. I could care less about the brand name.
    staciandababy

    Answer by staciandababy at 8:05 AM on Nov. 16, 2012

  • I hate hearing about things like this, not because I care for the brand but I hate seeing people lose their jobs. I eat neither twinkles or wonder bread.
    mommy_jules

    Answer by mommy_jules at 8:09 AM on Nov. 16, 2012

  • It's sad, but its hard to miss what I don't eat.
    RyansMom001

    Answer by RyansMom001 at 8:12 AM on Nov. 16, 2012

  • Im gonna miss orange cupcakes suzie qs and zingers... oh and ding songs in the freezer
    flowersmama

    Answer by flowersmama at 8:17 AM on Nov. 16, 2012

  • Im gonna miss orange cupcakes suzie qs and zingers... oh and ding songs in the freezer
    flowersmama

    Answer by flowersmama at 8:17 AM on Nov. 16, 2012


  • I don't care that much about their stuff- but an occasional twinkie is yummy ;)


    *there are other brands of them though so no biggie-even if they aren't AS good ;)

    charlotsomtimes

    Answer by charlotsomtimes at 8:22 AM on Nov. 16, 2012

  • I can make it but, more unemployed people doesn't sound good.
    3libras

    Answer by 3libras at 8:22 AM on Nov. 16, 2012

  • It won't affect my family at all - we don't eat anything made by them and don't have a factory near us either.
    idareyou

    Answer by idareyou at 8:26 AM on Nov. 16, 2012

  • matters to me that we dont have a factory near us!!!! matters to me more people will be struggling because they have lost jobs
    the food is not an issue the families are!!!
    luvmygrandbaby

    Answer by luvmygrandbaby at 8:51 AM on Nov. 16, 2012

  • 18, 000 jobs lost today.
    staciandababy

    Answer by staciandababy at 9:07 AM on Nov. 16, 2012

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