Hostess announces liquidation, the end of Twinkies
We sure hope you took us seriously yesterday when we told you to stockpile your Twinkies, because today Hostess has officially announced that it is going out of business.
November 16, 2012 at 06:13 AM
2 minute read
The original version of this story was published on Law.com
We sure hope you took us seriously yesterday when we told you to stockpile your Twinkies, because today Hostess has officially announced that it is going out of business.
Will your life be emptier without such cream-filled delights as Ho-Ho's, Ding Dongs and those weird Twinkies that are covered in raspberry goo? We can't say. What we do know is that Hostess Brands Inc. has sought court permission for liquidation, just as it threatened it would if striking workers did not return to their posts by 5 p.m. yesterday.
“We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike,” Hostess CEO Gregory Rayburn said in a statement. “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.”
Hostess has been dealing with its second Chapter 11 bankruptcy filing since 2004, and the strike was just the last straw in its struggle for solvency. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union was protesting measures the company took to cut costs, which included cutting wages by 8 percent, and benefits by 27 percent to 30 percent.
The company is wasting no time, either. It has canceled all orders with its suppliers and any snack cakes currently in transit will be returned to the shipper.
Read more at Thomson Reuters.
Follow the tragic tale of Hostess on InsideCounsel:
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