Hostess Brands - the maker of such iconic baked goods as Twinkies, Devil Dogs and Wonder Bread - announced Friday that it is asking a federal bankruptcy court for permission to close its operations, blaming a strike by bakers protesting a new contract imposed on them.
The closing will result in Hostess' nearly 18,500 workers losing their jobs as the company shuts 33 bakeries and 565 distribution centers nationwide, as well as 570 outlet stores. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union represents around 5,000 Hostess employees.
"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," said CEO Gregory Rayburn in a statement.
Hostess will move to sell its assets to the highest bidder. That could mean new life for some of its most popular products, which could be scooped up at auction and attached to products from other companies.
Read - Hostess Brands closing for good
Previously - Stay gold, Twinkie the Kid. Stay gold. and Take my snack cakes? Over my blinded, bloated body!
Never had a Twinkie before in my life so I really won't miss them at all. I actually haven't had anything HOSTESS brand in the past 11 years, doing just fine without them.
Headline should read, "Striking Union Workers Kill Hostess."
Especially in this day and age I can't for the life of me understand how you would willingly become unemployed instead of taking a pay cut..I just don't understand...
Maybe the factories will revamp themselves and produce food that doesn't poison and make us obese pigs. Sadly unlikely.
I think we have to show them we want that type of food, first
I'm sure many of the jobs at Hostess didn't require anything more than a high school diploma. The supply of those holding only a high school diploma is exponentially higher than the demand. As our country continues down it's path, those with college degrees will soon be taking those jobs, leaving those with nothing but a diploma....screwed. Companies know that they hold all the cards; it's the unions that still think they have even a semblance of clout.
This shows how smart the owners aren't... a hedge fund and some investment firms. They couldn't keep a business alive and we all trust them with our money! But truly, these guys were looking for an excuse to cut Hostess loose. They'll kill off the business and sell the product line for a small fortune. The last round of cuts was intended to provoke the unions so they would be blamed for the killing blow. And look how many people fell for it! Some of you are still suckers for anything that looks like it was run by a bunch of business wiseguys in expensive suits. Don't blame the unions, they gave until it hurt. Blame the hedgefund wiseguys, they are well dressed thieves.
the employees were hardly suffering...
No worries... those workers can stay at home and recieve their free health care and welfare checks now. That sure beats wearing those stupid white caps on their heads and EARNING a living. Congrats – UNION DREAM REALIZED!!!
you're a freaking idiot!!!
Striking workers do not get government benefits idiot.
The CEO was forcing a new contract on the workers, he finally pushed too hard.
THe company was headed for bankruptcy 10 months ago, long before they tried to force a new contract on the employees while giving the 2+million a year CEO a raise.
Yep you're an idiot.
Experiencing the variety of comments and sentiments on this subject from across the internet has demonstrated to me how truly dismissive and stupid we have become.
I do not see how such a people can find their way to prosperity again. We don't even understand the ingredients anymore.
This is an example of the new corporate America. If employees ask for better wages the company puts a gun to its head and and pretends the big bad union is the problem. I am willing to guess that the ceos can't wait for the huge profits they will make selling off the company in portions. They will get bonuses while at the same time most will be hired on by new management.Tax benefit to making the company look unprofitable.Where do you think all the cash rung out from this will go? They willl be able to probably leave many suppliers holding the bag on expenses,while at the same time avoiding paying employees most benefits. Many employees will likely find themselves at the same job, but reduced on tenior and wages under a new company name. Breaking up a company can be more lucrative than making an existing one work . The only ones who will realy lose are average workers ,don't buy the b.s. corprates know how to game this system ,and weaken labor all in one shot. Wake up hard working people, don't parrot what ceos want you to believe.
Excellent post! You hit the nail on the head!! I am so tired of people blaming "greedy" workers for wasking for decent, livable wages while the executives and CEO line their pockets with the profits! Too many people naively believe that corporations actually reinvest the money from profits back into the company, where in reality all executives do is take and take for themselves...Contrary to what the TeaBaggers say: the myth called "capitalism" is alive and well...
Why must CNN keep broadcasting only part of the story? There is so much more here than what they are telling the public.
The fact is this is the second time management has demanded wage and benefit reductions from the rank and file. During this so called "restructuring", the management continued to massively increase their incomes from the company while reducing wages and benefits to the workers. This type of behavior is prevalent in today's business world. Look at the banking industry, the transportation industry, the public services, and many others and you will find the same story. It is wrong to broadcast these stories to the public without showing the whole picture. Stop painting the unions and workers as the bad guys and start telling the truth. Your sound bite this morning was "union strike forces Hostess to close" couldn't be further from the truth and once again gives a black eye to the unions when seen by millions of viewers. This business failure was a direct result of management policies and greed, and just like many other business failures in this country today.
A real news organization would not be afraid to tell the whole story. A real news organization would not homogenize the story to suit their upper management bosses. I could go on but it is obvious that CNN and the other news shows are just entertainment and are not actual news facts being presented in an unbiased manner.
check your facts.
in other words...a Bain capital-like Romneyishant move!
I will forever miss those chocolate cupcakes, moist and awesome!
what a move, the showed Hostess and their own bank accounts!
While I will not miss the Twinkies, I will miss the Wonder Smart Wheat. It has lower carbs than any other bread that I've found and is great for diabetics. Twinkies and Ding Dongs – my husband will miss those.
Little Debbie sucks though, Hostess way better
Gotta disagree. I've never much cared for creme filled desserts, and Little Debbie seems to do better in that regard.
Speak for yourself, it's just a fun snack, not an ordeurve
Thanks a lot all you greedy jerks, least you could have done was find a better job without affecting everyone across the country! Greedy bastards
Hostess Brands is unprofitable under its current cost structure, much of which is determined by union wages and pension costs. The BCTGM in September rejected a last, best and final offer from Hostess Brands designed to lower costs so that the Company could attract new financing and emerge from Chapter 11.
The Unions had plenty of opportunities to save their job and those of all the hostess employees. They let their decision be led by greed. Good riddance to to unions.
Thank you unions for getting rid of the nastiest tasting dessert treats out there. Did the union workers even taste their product? Did they think there was actually a strong demand for that waxy crap? I'll miss Twinkies and Woderbread as punchlines to jokes.
When you get a lot of money and have a good idea maybe you can start a company. Until then don't be greedy and go to work and stop being a baby. There are lots of people who have to pay the bulk of their health care and do not get a pension.
Now you will have no jobs and not get any more employee discounts. I am sure the bulk of the Salaried employees did not want this to happen either. But you your force the hand of the one who feeds you sometimes you get bit.
Thank you greedy unions!
Perhaps this will help America's Obesity Problem. Let's try to be optimistic.
I wouldn't count on it, because while this is indeed regrettable, it is a happy turn of events for Little Debbie who will no longer have to sit in the shadows, forever occupying the 2nd tier of snacky goodness. Not unlike the unattractive twin sister at homecoming. Once relegated only to kids’ brown bag lunches because of their less discerning palates, Little Debbie will finally get her opportunity for a shot at the Big Show. Carpe diem Little Debbie. Carpe diem.
Ya right, not as long as Coke and Pepsi stick around!
Another case of management taking all the rewards that should have gone to the workers. I heard that the management are all rich 1%ers and they PURPOSELY wanted to shut this business down. Now the workers are without jobs just before the holidays. Does that seem fair to you?
You heard? Where?
Are you an idiot man? It is publicly known from all sources (non-Union propaganda sources) that Hostess was more than amicable, and offered 9% wages back in 3 years from the 8% they wanted to take away. I'm a Democrat, voted for Obama, but I know the damages Unions cause...I'm salary in a union factory...
The union screwed themselves, bigtime. Good luck in the unemployment lines near the Holidays...idiots.
Your "handle" and the paragraph that follows are mutually exclusive.
Only you can help you.
Sad day for Hostess fans. I grew up with Twinkies and Ding Dongs. To find one in my lunch bag during elementary school was a special treat. Hope another bakery buys them and keeps the iconic brands going.
Unions suck plain and simple. They may have done good initially when set up in the 20's to insure safe work environments, equal pay and benefits, but this is just another example of how stupid the unions can be. Just another example of workplace Darwinism. And we wonder why it cheaper to send out work overseas? You reap what you sow.
Amen, brother. ^^This man speaks the truth**
Like I said yesterday, you strike long and hard enough, you no longer have a job.
I knew a guy once that was part of the auto union. Got paid $75/hour to put that sticker on your visor. He actually told me he laughed about it all the way to the bank. Which was were I worked at the time.
How about we all struggle together?
This is all part of a vast and far reaching liberal conspiracy on the part of the Obama administration. THink about it: Michelle Obama loves to tell people what to eat. Hostess makes junk food. Do you honestly think that she did not have a hand in this.
But in the final measure, it is sure lucky that those workers had a union to represent them. Now, instead of having to partially contribute to the cost of their benefits, they have, uh...well, never mind.
Shouldn't you and your comment be on the Fox News website?
ha ha he he he i love the liberal mob that shouts FOX NEWS oh let me guess you watch msnbc or nbc wake up and stop watching the simpsons fox news isn't biased.
Republicans would launch conspiracies but conspiring requires cooperation and reading skills. Look at Boner's hair to understand how he is related to Trump. You kin see it.
This is another example where a union being shortsighted has put themselves out of business and lost their coveted benefits that they can't live without. Now since they couldn't give in a little to fund their own health care costs and retirement they are now jobless. It would appear that unions are trying to kill the few jobs left in the US. I hope you all like Chinese twinkies.
See also: Northwest Airlines
The workers stood up for their pensions, wages and working conditions!! Thank God they had the UNION to back them..how would you like to see the CEO take a 300 percent RAISE and IMPOSE a pay cut on all of us?! Doesn't make sense don't care how you look at it...we knew the potential...but IT WAS ALREADY HANGING OVER OUR HEADS ANYWAY...so what do ya think...they were gonna close 9-10 more facilities ANYWAY...AND NO BUSINESS PLAN??!! YA WELL i SUPPORT EVERY ONE OF STRIKING UNION BRITHERS AND SISTERS!! ENOUGH CORPRATE GREED...have them give back their millions to the lil guys...THEN talk to us!
Typical union worker. We are so put upon, Why should we have to fund our own retirement or pay our fair share of our healthcare? It is your (unions) own greed that has caused so many vital US businesses to go under due to an old way of thinking (fully funded pensions and healthcare). Unions need to change with the times and admit that if they continue with their current demands that all the businesses that currently hire union workers will be out of a job. Unions are dragging the US economy down. Keep it up and the US won't be competitive in any business sector.
^ Agreed. LIke I mentioned in an earlier comment....I voted for Obama and I'm a Democrat...but I know first-hand what damage Unions can cause.
I'm COMPLETELY against corporate greed and being fair to the PEOPLE, but in the case of many unions...it's the UNION PEOPLE not being fair to the COMPANY.
Unions had their place....now we have enough labor laws and corporate/social responsibility in America to protect eveyone, union or not. Unions need to do what hostess just did....throw in the towel and die off.
mmmmmmm twinkies : )
Boy, it is sure a good thing that those workers had a union to represent them. They sure showed Hostess!
You must be a company fat cat or a dumb ass that can't read...SOLIDARITY UNION BROTHERS AND SISTERS...give up ur pay increases CEO Rayburn and all the top execs...actually share in the sacrifice as you say...
LOL Turth assumptions.
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