Strike ends with Hostess going out of business
Fri, 16 Nov 2012 17:19:41 GMT —
The maker of Twinkies and other snack food reports that it is going out of business following a strike by its employees.
Hostess Brands said it permanently closed three plants on Monday as a result of the strike.
The company announced on Wednesday that it would be forced to liquidate its assets if enough employees did not return to work.
The Irving, Texas-based business reported early Friday morning that it did not have enough workers to restore operations.
According to the Hostess website, the company is winding down operations and filed a motion in bankruptcy court to close its business and sell its assets.
The Associated Press reported that members of the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union went on strike last week after rejecting a contract that slashed wages.
The bakers union represented about 30 percent of the workforce for Hostess.
Hostess plans to sell its iconic brands, which include Twinkies, Ding Dongs, Ho Ho's, Snow Balls and other popular snack treats.
Originally founded in 1930 at the Interstate Bakeries Corporation, Hostess owns 33 bakeries, 565 distribution centers and 570 bakery outlet stores with about 5,500 delivery routes throughout the United States.