Say It Ain't So! Twinkies is Going Out of Business?
6 months ago
Hostess Brands, maker of the sugary icon, blames striking union workers
Already bankrupt and now claiming poverty, Hostess Brands, the maker of Twinkies, Ding Dongs and Wonder Bread (to name a few), on Friday got a court order to speed up a hearing on its request to shut the doors of the company for good.
The Texas-based company's liquidation request hearing is scheduled for Monday in bankruptcy court in White Plains, N.Y.
Hostess blames its move to go out of business on the refusal of striking workers from the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union to make a deal concerning wages and benefits.
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Union workers walked off the job last week after the company offered a new contract with what workers called "extreme" wage and benefit cuts. The National Consumers League backed the striking workers, releasing a statement accusing Hostess of negotiating in bad faith.
"Hostess Brand has unfortunately failed to make contributions to employee pension plans as agreed upon in collective bargaining agreements and has drastically cut health benefits and imposed an 8 percent wage decrease," the National Consumers League said in the statement.
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Hostess, which is still generating $2.5 billion in sales from its well-known snack cakes and breads, said it had suspended operations at all of its 33 plants around the United States and plans to fire most or all of its 18,500 employees. The company did say that it would be selling brands like Ho Hos, Ding Dongs and Wonder bread as it moves to liquidate assets.
"We'll be selling the brands and as much of the infrastructure as we can," said company spokesman Lance Ignon. "There is value in the brands."