This is very likely the saddest thing I’ve ever had to share with all y’all … it is very possible that tasty treats like Twinkies, Ho Hos, Ding Dongs, Sno Balls and all other products made by Hostess will be dunzo — forever! Hostess has announced that they are going out of business! The company has been feuding with striking employees (over a various number of things, like salary and retirement) and as a result they maintain that they cannot continue to keep the business going. Folks, this is no joke … NO MORE TWINKIES … EVER! Why are we not rioting in the streets about this?!?
Hostess Brands Inc. says it’s going out of business after striking workers across the country crippled its ability to make its Twinkies, Ding Dongs and other snacks. The company had warned employees that it would file a motion with U.S. Bankruptcy Court Friday seeking permission to shutter its operations and sell its brands if plants hadn’t resumed normal operations by a Thursday evening deadline. The deadline passed without a deal. The closing would mean the loss of about 18,500 jobs. “I don’t know if they thought that was a bluff,” CEO Gregory Rayburn said on CNBC Friday. He said the financial impact of the strike makes it “too late” to save the company even if workers have a change of heart. That’s because the clients such as retailers decide to stop carrying products when supplies aren’t adequate. Rayburn said he’s hopeful that the company will find buyers for its roster of about 30 brands, which include Ho Hos, Dolly Madison, Drake’s and Nature’s Pride snacks. The company books about $2.5 billion in sales a year. Hostess, based in Irving, Texas, said its stores will remain open for several days to sell remaining products. Operations at its 33 factories were suspended Friday. The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade. The move comes after thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike last week after rejecting a contract offer that slashed wages and benefits in September. The bakers union represents about 30 percent of the company’s workforce … Hostess had said earlier this week that production at about a dozen of its plants were seriously affected by the strike. Although many workers decided to cross picket lines, the company said it wasn’t enough to keep operations at normal levels. Three plants were closed earlier this week … Hostess said the company is unprofitable under its current cost structure, in large part because of union wages and pension costs. Rayburn said in a statement on the company website that all employees will eventually lose their jobs, “some sooner than others” … Hostess, founded in 1930, was fighting battles beyond labor costs. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating.
Wow. This is serious business, y’all. When I first heard about this Hostess going out of business thing earlier this week, I honestly figured it was just a negotiating tactic and never once considered it was a real possibility. No more Twinkies … I can’t really wrap my head around this notion. Now, granted, it’s possible that another company will swoop in and buy Hostess and keep the brand alive but … damn, what if no company emerges? Don’t get me wrong, I realize that Hostess doesn’t make the healthiest products around but their products are an American institution (I can’t EVEN tell you how much I LURVED Hostess apple and cheery pies when I was a little kid). I don’t even know what I will do with myself if Twinkies cease to exist. I’m gonna take my ass to various stores today and stock up on boxes of Twinkies while I still can. Thankfully, the tiny baked cakes can be stored for decades so … at least there is some hope there.