PAnews.com, Port Arthur, Texas

News

Related Photos

  • A Hostess Twinkies sign is shown at the Utah Hostess plant in Ogden, Utah, Thursday, Nov. 15, 2012. Hostess Brands Inc. is warning striking employees that it will move to liquidate the company if plant operations don't return to normal levels by Thursday evening. The maker of Twinkies, Ding Dongs and Wonder Bread said Thursday it will file a motion in U.S. Bankruptcy Court to shutter operations if enough workers don't return by 5 p.m. EST. That would result in the loss of about 18,000 jobs, including hundreds in Ogden. Rick Bowmer

    Hostess Brands Strike_Edge.jpg

Discussion

November 16, 2012

Hostess to close, cites nationwide worker strike

Tom Murphy Associated Press

— Hostess, the maker of Twinkies and Wonder Bread, plans to go out of business, lay off its 18,500 workers and sell its snack cake and bread brands.

The Irving, Texas, company said a nationwide strike crippled its ability to make and deliver its products, which also include Ding Dongs, Ho Ho’s and Home Pride bread.

Hostess suspended bakery operations at all its factories and said its stores will remain open for several days to sell already-baked products.

The company 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.

“Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands,” CEO Gregory F. Rayburn said in a letter to employees posted on the company website.

He added that all employees will eventually lose their jobs, “some sooner than others.”

“Unfortunately, because we are in bankruptcy, there are severe limits on the assistance the (company) can offer you at this time,” Rayburn wrote.

Thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike last week after rejecting in September a contract offer that cut wages and benefits. Hostess said Friday the company is unprofitable “under its current cost structure, much of which is determined by union wages and pension costs.”

A union representative did not immediately return a call from The Associated Press seeking comment on the company’s announcement.

Hostess has said that production at about a dozen of the company’s 33 plants has been seriously affected by the strike. Three plants were closed earlier this week.

Hostess had already reached a contract agreement with its largest union, the International Brotherhood of Teamsters.

The company, founded in 1930, was fighting battles beyond labor costs. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating. Hostess also makes Dolly Madison, Drake’s and Nature’s Pride snacks.

Text Only
News
Video
Obama: 'Lives Have Been Saved' by NSA Programs Obama: Friction in Afghan Talks No Surprise Unusual Heat Wave Bakes Alaska Raw: Massive Protests Fill Brazilian Streets Raw: German President Welcomes President Obama Fans Cheer Dramatic Heat Comeback Raw: Arizona Wildfire Scorches 8 Square Miles Hoffa Mystery Still Fascinates After 4 Decades Raw: 1 Dead in Shooting at Mo. Apartment Complex Raw: Huge Fire Near Yosemite National Park 3 Charged in Ohio With Enslaving Mom, Daughter Raw: Volcano Erupts Near Mexico City Kid Couture: Spending Big Bucks on Babies Suicide Bombs Target Baghdad Mosque, Killing 29 Military Plans to Put Women in Combat Jobs Solar Power Chargers in NYC Parks Civil Rights Groups Sue NYPD Over Muslim Spying RAW: NSA Director Says 50 Plots Foiled
Facebook
Sports Tweets
  • Sports tweets

    Anonymous The Port Arthur News Tue, May 31
Community Calendar
Loading…
Events by eviesays.com