Friday, November 16, 2012
Hostess, the makers of Twinkies, Ding Dongs and Wonder Bread, is going out of business after striking workers failed to heed a Thursday deadline to return to work, the company said.
Hostess CEO Gregory F. Rayburn said the firm had filed a motion with the U.S. Bankruptcy Court to shutter its business:
“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike. Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”
Hostess Brands Inc. had earlier warned employees that it would file for bankruptcy and sell off assets if striking workers failed to return to work by 5 p.m. Thursday. In announcing its decision, Hostess said it would close its 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores in the United States.
However, NBC’s Savannah Guthrie read a statement on “Today” from the bakers’ union that said:
“Despite Greg Rayburn’s insulting and disingenuous statements of the last several months, the truth is that Hostess workers and the union have absolutely no responsibility for the failure of this company. That responsibility rests squarely on the shoulders of the company’s decision makers.”
An American institution, Hostess, founded in 1930, has fought beyond labor costs in recent years and stiff competition as Americans are increasingly conscious about healthy eating.