Hostess Brands, maker of such iconic products such as Twinkies, Wonder
Bread, Ding Dongs and Drake's Devil Dogs has asked Federal Bankruptcy Court for permission to close all its operations. In September the teamsters union accepted a new contract with reduced wages. The baker's union, however, rejected a new contract offer which would have reduced their salaries by 8% in the first year, increased wages by 3% for the next three years and increased them by 1 % in the final year.
CEO Gregory Rayburn claimed the company does not have enough assets to
endure a protracted strike by the bakers despite annual sales of $2.5 billion.
Hostess currently employs 18,500 workers, 33 bakeries, 565 distribution
centers and 570 outlets. Frank Hurt, representing the baker's union charged that the company has been mismanaged but offered no compromise or solution. Undoubtedly parts of the company, certain brands, will be sold at auction in the
future.
For now, time to say goodbye.
