Hostess Makes Plans To Shut Down
By// Chandler Rollins
Beloved snack food giant Hostess Brands, Inc., the maker of Ding Dongs, Wonder Bread and the infamous Twinkies, filed a motion to liquidate Friday with the U.S. Bankruptcy Court. This comes after the company has struggled for weeks to keep up with labor costs.
Thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike last week after rejecting a contract that slashed workers’ wages and benefits. The company’s inability to come to an amicable agreement with the union was ultimately its demise.
“The strike impacted us in terms of cash flow,” said Hostess CEO Greg Rayburn. “The plants were operating well below 50 percent capacity and customers were not getting products.”
The closing of Hostess will mean the loss of about 18,500 jobs. Its bakery outlet locations, roughly 500 stores, will stay open to sell the remaining products.