Hostess Brands going out of business after nationwide worker strike
Fri, 16 Nov 2012 12:48:21 GMT —
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 says the closure will impact 33 bakeries, 565 distribution centers, about 5,500 delivery routes and 570 bakery outlet stores throughout the United States.
There is a Hostess Bakery Outlet Store located in DeWitt. A statement on the Hostess website indicates that retail stores will remain open for several days in order to sell already-baked products.
The Hostess website says "On Nov. 12, Hostess Brands permanently closed three plants as a result of the work stoppage. On Nov. 14, the Company announced it would be forced to liquidate if sufficient employees did not return to work to restore normal operations by 5 p.m., EST p.m., Nov. 15. The Company determined on the night of Nov. 15 that an insufficient number of employees had returned to work to enable the restoration of normal operations."
Read more about it on Hostess's website.
(Information from the Associated Press was used in this report.)