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Hostess Ending The Company

Posted by on Nov. 16, 2012 at 7:58 AM
  • 208 Replies

 http://www.nbcnews.com/business/hostess-maker-twinkies-ding-dongs-says-closing-business-1C7112898

 

Hostess, maker of Twinkies and Ding Dongs, says closing business

Hostess Brands, baker of iconic Twinkies cakes, said Friday it asked a court's permission to shut down the entire company after a strike crippled its operations.

The move shuts down one of the nation's oldest and largest producers of baked goods. Founded in 1930, it produces such well-known brands, aside from Twinkies, as Ding-Dongs, Ho Ho's, Sno Balls and Donettes, not to mention Wonder bread, which the company says is the best-selling white bread in the United States.

In a statement, Hostess said its bakery operations have been suspended at all plants and that it would lay off most of its 18,500 workers to focus on selling its assets. It said it has filed a motion with the U.S. Bankruptcy Court seeking permission to close its business and sell its assets, including 33 bakeries and 565 distribution centers.

The company said it would continue to deliver products and its stores would remain open for several days to sell already-baked products.

"The Board of Directors authorized the wind down of Hostess Brands to preserve and maximize the value of the estate after one of the company's largest unions, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), initiated a nationwide strike that crippled the company's ability to produce and deliver products at multiple facilities," Hostess said in the statement.

On Nov. 12, Hostess permanently closed three plants because of the strike. Two days later, the company announced that it would be forced to liquidate if enough workers did not return to restore normal operations by 5 p.m. ET Thursday.

"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," said Gregory F. Rayburn, chief executive officer.

by on Nov. 16, 2012 at 7:58 AM
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Replies (1-10):
ZanderandBella
by Member on Nov. 16, 2012 at 8:01 AM
9 moms liked this

Strikes don't always work people. I understand they wanted more money but the government has made it difficult for people to run businesses in the US. Then they wonder why they are shipping things overseas. 

candlegal
by Judy on Nov. 16, 2012 at 8:03 AM
11 moms liked this

Oh look another company put out of business by a union.   Wonder what the workers for going to do for a job now.

sunnyday05
by on Nov. 16, 2012 at 8:03 AM
7 moms liked this
Greedy union. Teamsters even agreed to the new contract but not the bakers union. How sad.
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mikiemom
by Ruby Member on Nov. 16, 2012 at 8:04 AM
2 moms liked this
Yes, because reducing their profit never one time occurred to them.
sunnyday05
by on Nov. 16, 2012 at 8:07 AM
1 mom liked this
They don't have a choice. The teamsters union looked at the companies books and agreed to the new contract because they knew it was the only way to stay open. It was the bakers union who was greedy and now they take down the whole company.

Quoting mikiemom:

Yes, because reducing their profit never one time occurred to them.
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candlegal
by Judy on Nov. 16, 2012 at 8:08 AM
2 moms liked this

I sure hope the bakers union will be able to help all these people find jobs so they can feed their families but I doubt they will.

Quoting sunnyday05:

They don't have a choice. The teamsters union looked at the companies books and agreed to the new contract because they knew it was the only way to stay open. It was the bakers union who was greedy and now they take down the whole company.

Quoting mikiemom:

Yes, because reducing their profit never one time occurred to them.


romalove
by Roma on Nov. 16, 2012 at 8:09 AM
3 moms liked this
They were in bankruptcy.

Quoting mikiemom:

Yes, because reducing their profit never one time occurred to them.
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Claire-Huxtable
by on Nov. 16, 2012 at 8:09 AM
1 mom liked this

maybe the union should think that without some profit, they wouldn't afford to run the company.

They didn't have the money for that.   There wasn't the profit to do it.

Quoting mikiemom:

Yes, because reducing their profit never one time occurred to them.


mikiemom
by Ruby Member on Nov. 16, 2012 at 8:15 AM
2 moms liked this
I don't know maybe they should try baking goods that are healthy and taste good. I haven't purchased that brand in over 15 years.
romalove
by Roma on Nov. 16, 2012 at 8:19 AM
8 moms liked this

 

Quoting mikiemom:

I don't know maybe they should try baking goods that are healthy and taste good. I haven't purchased that brand in over 15 years.

 You just seem anti-everything some days, and this is one of those days.

18,500 people are losing their jobs.

There are many people who love their products, who find them iconic even, who will be missing having them.

I likely haven't bought a Hostess product in almost as many years as you have, but I feel badly for the people who are losing their jobs because the union was more intent on having their way than on maintaining jobs.  Their jobs as well, btw.

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