Hostess Closing After Workers Strike

Category: News Briefs Published on Friday, 16 November 2012 09:38 Written by Examiner

Hostess is closing after a workers strike that began Nov. 9. On Friday the company's CEO issued a statement that the company known for making Twinkies, Ding Dongs, and Wonder Bread will liquidate everything and stop operations, CNN reported Nov. 16.

"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," CEO Gregory Rayburn said in a statement.

The Hostess strike had a 5 p.m. deadline of ending Thursday, but that timeline wasn't met. Now the company will file a motion in U.S. Bankruptcy Court and sell off all its assets. That means 33 factories, 565 distribution centers, and 18,500 workers losing their jobs.

In September Hostess signed a contract with the International Brotherhood of Teamsters in exchange for cutting workers wages and benefits by eight percent. Members of the their second largest union in the bakery rejected the agreement and went on strike. The threat of Hostess closing over their strike wasn't enough to bring them back.

CNN reported that it's possible popular Hostess brands could be picked up by the highest bidder in the liquidation -- meaning Twinkies and other delicious treats could just be attached to a different brand name.

http://www.examiner.com/article/hostess-closing-after-workers-strike-ceo-issues-statement