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Bye−bye Twinkies: Iconic US bakery to close

Source : IANS
Last Updated: Sat, Nov 17, 2012 08:00 hrs

Washington, Nov 17 (IANS/RIA Novosti) Say goodbye, at least for now, to Twinkies, Devil Dogs, Ho Hos and Wonder Bread. Hostess Brands, maker of the iconic American baked goods, said Friday that it would go out of business after failing to get wage and benefit cuts from thousands of striking bakery workers.

Hostess announced that it was asking a US federal bankruptcy court for permission to close its operations.

The 82−year−old company blamed the shutdown on a nationwide strike by thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union that began last week.

"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," said Hostess CEO Gregory Rayburn in a statement.

Hostess said it made the decision to go out of business after determining that not enough employees returned to work by a Thursday deadline.

Nearly 18,500 workers will lose their jobs as Hostess shuts down 33 bakeries, 565 distribution centers and 570 outlet stores nationwide, according to CNN.

When asked by business news television network CNBC if the shutdown could be reversed if the Bakers' union agreed to immediately return to work, Rayburn said: "too late."

Hostess could sell its assets to the highest bidder, which means some of its most popular products could be sold again in the future.

−−IANS/RIA Novosti

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