For months unions would not talk with the owners of Hostess (Twinkies, Wonder Bread, Ding-Dongs and more). The Teamsters begged the Bakery, Confectionery, Tobacco and Grain Millers International Union to talk with the owners. Now the company is being liquidated and sold for parts.
“Irving-based Hostess Brands Inc. asked a U.S. bankruptcy court on Friday for permission to close its operations, resulting in the loss of roughly 18,000 jobs nationwide.
The company issued a statement about the decision, saying it will “move promptly” to lay off most of its 18,500 employees and focus on selling the assets to the highest bidder. CNNMoney reported that the maker of such iconic brands as the Twinkie and Wonder bread blamed a strike by bakers for its closure.
The company will shut down 33 bakeries and 565 distribution centers and said it would liquidate its assets to the highest bidder. The corporate headquarters is in Irving.
We are watching the movement from Recession to Depression, and it is NOT in slow motion anymore.
Hostess Brands says it’s closing down because of strike
Dallas Business Journal by Lance Murray, 11/16/12
Hostess blamed a strike by bakers for its closing.
Irving-based Hostess Brands Inc. asked a U.S. bankruptcy court on Friday for permission to close its operations, resulting in the loss of roughly 18,000 jobs nationwide.
The company issued a statement about the decision, saying it will “move promptly” to lay off most of its 18,500 employees and focus on selling the assets to the highest bidder. CNNMoney reported that the maker of such iconic brands as the Twinkie and Wonder bread blamed a strike by bakers for its closure.
The company will shut down 33 bakeries and 565 distribution centers and said it would liquidate its assets to the highest bidder. The corporate headquarters is in Irving.
Hostess CEO Greg Rayburn issued this statement Friday: “We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike.”
The strike by the Bakery, Confectionery, Tobacco and Grain Millers International Union began Friday at a plant in Lenexa, Kan. and quickly spread to other Hostess facilities around the nation.
Rayburn responded on Monday by closing plants in Seattle, Wash., St. Louis, Mo., and Cincinnati, Ohio, and warned the union that the company would close and liquidate if the strike became protracted.
On Wednesday, Rayburn said the company would liquidate if the strikers didn’t return by 4 p.m. Central time Thursday, but he said on Thursday that he had heard “zero” from the union as that deadline approached. The Teamsters Union encouraged the bakers union to conduct a secret vote to determine if members wanted to go back to work.
As of 7:30 a.m., the union had not acknowledged Hostess’ decision on the union’s website or made a statement. Since the strike began, the union has blamed poor management by the company for its problems and said the strike was not the reason the company might shut down.
Double the CEO pay and stiff the workers. Typical Capitalist Pigs!
November 17, 2012 at 8:01 pm
Frank Hurt (union boss that wouldn’t see the writing on the wall )still has his 200,000 dollar a year job. While 18,500 and counting(don’t forget all the vendors who will cut staff and or go bankrupt becaus Hostess went out of business. (I was a teamster for 16 years and worked for wonder/hostess, the smartest thing I ever did was get out of the union and its class warfare mentality)
November 17, 2012 at 12:22 pm
Joseph Goebbels would be proud of this type of ‘journalism”….
November 17, 2012 at 11:39 am
The CEO and Officers gave themselves a 4X bonus and raise (CEO from $750,000 to $2.5 Million) don’t think the unions are to blame, Vulture Capitalist and bad management sunk this company
November 17, 2012 at 11:35 am
Rubbish. Unions are all but gone, and Hostess started going under 10 years ago.
November 17, 2012 at 11:24 am