Hostess to Close

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Hostess Brands, creator of well-known baked goods like Twinkies and Wonder Bread, announced Friday it is closing, CNN reported.

Hostess is asking a federal bankruptcy court for permission to close, citing a strike by bakers as the cause. Nearly 18,500 Hostess employees will lose their jobs as the company closes operations, which include 33 bakeries, 565 distribution centers and 570 outlet stores.

"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 had reached a deal with the Teamsters union, but The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, a smaller union that represents about 5,000 Hostess employees, refused to agree to concessions, Fox News reported.

Hostess assets will be sold off, so the expectation is that some of its more popular products may remain available.

Hostess filed for bankruptcy earlier this year, its second bankruptcy claim since 2004.

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This page contains a single entry by pete8374 published on November 16, 2012 10:21 PM.

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