November 16, 2012 at 4:39 AM | Page modified November 16, 2012 at 7:09 AMMore.
Hostess moves to liquidate after crippling strike
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.
By CANDICE CHOI and TOM MURPHY
PREV of NEXT
MARK LENNIHAN / AP
Hostess 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.
I'm sure each and every one of the rank and file are looking forward to THIS Thanksgiving and Christmas.