Hostess Going Out of Business
Hostess brand products, makers of the beloved Twinkies and Wonder Bread, have been American household staples since its establishment in 1930. Now, after more than 80 years, the company has declared bankruptcy and will no longer be producing those cream-filled, highly saturated treats America has come to know and love.
The Irving, Texas-founded corporation began to see trouble on Nov. 9, when a national strike instigated by the Bakery, Confectionary, Tobacco and Grain Millers Union (BCTGM) affected Hostess’ 33 bakeries, 565 distribution centers, and 570 bakery outlet stores.
The Union’s strike and the lack of financial resources Hostess needed to survive with a profit caused labor costs too great to pay. As much as the company and the union attempted to communicate for reorganization through negotiation and collective bargaining, the two could not agree on terms.
The time simply ran out as well as the financial resources to keep the company afloat.
With the shutdown of the Hostess Corporation, there are approximately 18,000 jobs that will go down with the company. That number includes the bakeries, distribution centers, and bakery outlets as well as the roughly 5,500 delivery routes.
“Hostess Brand intends to retain approximately 3,200 employees to assist with the initial phase of the wind-down”, said Hostess in a press release on their website.
The shutdown, in its entirety, should take less than a year.
The Hostess Brand Company blames its forced liquidation on the BCTGM Union and the BCTGM Union blames Hostess. But pointing fingers will not bring the cream-filled sponge cakes back.
Until there becomes a new face for cheap but delectable hostess-like treats, the best option is to raid the local grocer for all the Twinkies, Ding-Dongs and Wonder Bread that is available for the time being. They may become a great American legacy before too long.