Hostess Brands, the maker of iconic snacks such as Twinkies and Ding Dongs, said Friday it is closing its plants and letting go some 18,000 workers as it moves toward liquidation following a strike by some of its workers.
We are sorry to announce that Hostess Brands, Inc. has been forced by a Bakers Union strike to shut down all operations and sell all company assets. For more information, go to hostessbrands.info. Thank you for all of your loyalty and support over the years.
“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” said Gregory F. Rayburn, chief executive officer. “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.”
The wind down means the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores throughout the United States.
The Company said its debtor-in-possession lenders have agreed to allow the Company to continue to have access to the $75 million financing facility put in place at the start of the bankruptcy cases to fund the sale and wind down process, subject to U.S. Bankruptcy Court approval.
The Company’s motion asks the Court for authority to continue to pay employees whose services are required during the wind-down period.
In the end, Twinkies can survive the apocalypse but they cannot survive bankruptcy. What a shame!
Source: You can read the full statement at http://hostessbrands.com/Closing.aspx.
Joseph Guzman
Somewhere in this very moment, a Twinkies kid is crying in his sleep from this news.
Shimbo
Tallahassee (Zombieland) is probably crying as well. 🙂
Nelson
This is horrible news. It’s just horrible! I will miss you, Twinkies! 🙁