Maker of Twinkies Going Out of Business
November 16, 2012
Our children will grow up never knowing the sheer junky joy of eating a Twinkie. The manufacturers of the creme-filled treat (plus Ho Ho's and Wonder bread), Hostess Brands, have been forced to shut down the entire company after a debilitating workers strike.
The Baker's Union (BCTGM), which represents 30% of the Hostess workforce, went on a nationwide strike which resulted in the permanent closure of three of the company's plants on November 12th. By the 14th, Hostess announced that, unless the BCTGM returned to work by 5pm on Thursday, the company would be forced to liquidate.
"I don't know if they thought that was a bluff or if they thought that there was some better outcome, but that's essentially why we are where we are today, and the company will be liquidated," CEO and chairman Gregory F. Rayburn told CNBC in an interview today. According to Rayburn, even if the workers decided to come back, it's just too late. "30% of our workforce put 18,500 people out of a job," he said.
Despite the company's attempts to overcome the strike, Hostess will sell its 33 bakeries, 565 distribution centers, and even their secret recipes for its delicious cakes, reports nbcnews.com.
"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," Rayburn said in a statement to NBC News. Hostess will continue to sell already-baked products for the next several days. Get 'em while you can!