Hostess Brands To Close Over Strike
go out of business rather than deal with striking union employees.
The closing will result in Hostess' nearly 18,500 workers losing their jobs as the company shuts 33 bakeries and 565 distribution centers nationwide, as well as 570 outlet stores. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union represents around 5,000. "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 will move to sell its assets to the highest bidder. That could mean new life for some of its most popular products, which could be scooped up at auction and attached to products from other companies.Hostess, with annual sales of $2.5B, produced over 500 million Twinkies every year. Retailers have been advised not to expect new shipments for a very long time even if the brands are sold to other manufacturers quickly. The company's bread line includes Nature's Pride and Wonder Bread.