Twinkie-pocalypse: Hostess to go out of business, cut 18,000 jobs; Updated

Twinkie-pocalypse: Hostess to go out of business, cut 18,000 jobs; Updated

http://twitter.com/#!/CaleRamaker/status/269415673170653184

Confirmed: Hostess Twinkies do have an expiration date.

RIP twinkies! Hostess closes their doors as they can’t come to an agreement w the union.

— Dan Gilfrich (@dgilfrich) November 16, 2012

Hostess Brands intends to shut down and lay off its employees because not enough striking workers returned to work by the Thursday deadline.

Way to go, unions!

Happy now, unions? RT @ap: BREAKING: Hostess, the maker of Twinkies, Ding Dongs and Wonder Bread, is going out of business

— Rick Wilson (@TheRickWilson) November 16, 2012

Dear Hostess workers that no longer have a Job. Thank Your Union Rep!!!

— BiasedGirl (@BiasedGirl) November 16, 2012

So union workers at Hostess are willing to let the Co. close and 18,000 go jobless? Brilliant. Unions emblamatic of our problems. #twinkies

— Barry Bingham (@ImageSouth) November 16, 2012

That’s right, more than 18,000 jobs lost.

Hostess saying it didn’t have ability to survive Bakers Union strike announces liquidation of business.Appx. 18,000 will lose their jobs.

— Ron Hoon (@ronhoon) November 16, 2012

I haven’t eaten a Hostess product in years and years, and the jokes are funny…but 18000 jobs lost is grim.

— Rick Wilson (@TheRickWilson) November 16, 2012

But fear not, Twinkie lovers:

Hostess said it will seek bankruptcy court permission to close its business and sell its assets, “including its iconic brands and facilities. Bakery operations have been suspended at all plants.”

There may be a temporary shortage of Twinkies, but as Twitchy noted yesterday, some enterprising capitalist is likely to buy the Twinkie name and recipe.

Update:

Out: Hostess Twinkies. In: Bain Twinkies?

maybe Mitt Romney can go back to Bain and bailo out Hostess as a favor to the American people

— Rich Riker (@richriker) November 16, 2012

Even tastier: Koch Twinkies!

maybe koch will buy hostess 😉

— Ryan (@alwaysonoffense) November 16, 2012

Not so tasty: shuttered plants and more than 18,000 workers without jobs.

I didn’t grow up on Hostess stuff. Their snacks are unhealthy and their bread is, ick. But 18,000 people without jobs. Let that sink in.

— Jayvie Canono (@OneFineJay) November 16, 2012

Another union “victory.”

So glad unions are helping to create a stronger <strike>middle</strike> under class. #hostess

— Lachlan Markay (@lachlan) November 16, 2012

Update:

Sen. John McCain tweets his statement on the end of Hostess:

Twinkies maker Hostess closes – what will we do without deep fried Twinkies at the #Iowa State Fair?

— John McCain (@SenJohnMcCain) November 16, 2012

Update:

Hostess has updated its website to reflect the closing:

Good grief.RT @hmfearny: RT @mdrache: Hostess has already updated their website. bit.ly/Sx5bRF

— rdbrewer (@rdbrewer4) November 16, 2012

 

And they’ve posted a press release:

The Board of Directors authorized the wind down of Hostess Brands to preserve and maximize the value of the estate after one of the Company’s largest unions, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), initiated a nationwide strike that crippled the Company’s ability to produce and deliver products at multiple facilities.

Hostess Brands is unprofitable under its current cost structure, much of which is determined by union wages and pension costs. The offer to the BCTGM included wage, benefit and work rule concessions but also gave Hostess Brands’ 12 unions a 25 percent ownership stake in the company, representation on its Board of Directors and $100 million in reorganized Hostess Brands’ debt.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” said Gregory F. Rayburn, chief executive officer. “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.”

Congratulations to the BCTGM. We hope you enjoy reaping what you’ve sown.

Read more: http://twitchy.com/2012/11/16/has-the-twinkie-pocalypse-arrived-hostess-says-it-will-indeed-go-out-of-business/

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