Hostess Brands to shut down

Hostess will shut down after the company and labor unions failed to reach an agreement, the Los Angeles Times and Chicago Tribune reported.

Hostess will lay off 18,500 employees, according to both reports.

Hostess will stop production at its 33 U.S. plants. The company is blaming its decision to shut down on strikes by the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union, according to the Los Angeles Times.

The unions accused Hostess of making unreasonable demands, including wage and benefits cuts of 30 percent for workers, according to the Los Angeles.

Hostess will sell its most valuable assests, including Twinkies and Wonder bread, to the highest bidders, according to the Los Angeles Times.