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UPDATE: End of The Road For Hostess

UPDATE: Hostess says it’s going out of business — but some of its products may continue to be sold. The company’s CEO says he’s hoping to find a buyer for about 30 Hostess brands.

Hostess, the maker of Twinkies, Ding Dongs and Wonder Bread, had warned employees it would move to shut down its operations and sell its brands if striking workers didn’t allow plants to resume normal operations by yesterday evening. The deadline passed without a deal.

Thousands of union members went on strike last week after rejecting a contract offer that slashed wages and benefits.

CEO Greg Rayburn says there’s no buyer waiting in the wings to rescue the company, but that there’s been interest in some of its 30 brands, which include Dolly Madison and Nature’s Pride snacks.

Hostess was hurt by a consumer shift toward more wholesome, fresh products. And it was saddled with high pension, wage and medical costs related to its unionized workforce.

Rayburn said the company was operating on thin margins, and that the strike was a final blow.

The closing will mean the loss of about 18,500 jobs.

The company’s roughly 500 bakery outlet stores will stay open for several days to sell remaining products.

KSKollection
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  • Jason

    Unions…they are just great aren’t they..NOT. 18,500 workers wanted more and now look what they got..guess they should have been happy.

    • http://hayspost american

      well jason i read in the news that they wanted to cut wages and benifits, but the higher ups increased their salery from $750,000. to $2,550,000. so it works both ways, they are not really saying their broke, their saying they are closing and looking for a new owner, or it could be a stunt to break walk out

    • Reality Check

      Unions got us fair labor standards. Work day limits, breaks, lunches, and mandatory overtime for hourly employees are all because of unions. They have kept young children from jobs that used to kill them on a daily basis, they demanded a minimum wage(though that needs improving) and they brought corporate greed into the spotlight. A group always has more power than an individual. If you want to go back to the dark, dangerous beginnings of the industrial era, dismantle all unions. Greed is always more powerful than that of a corporation’s social conscience.

  • Carlos Sanchez

    why?

    • http://hayspost Arthur Doyle

      Why what senor Carlos? Why is it better to have a job than to not have a job? If in fact that is what you are asking, then my fear for you is that you would be unable to comprehend the answer.

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