Horror: Hostess Files For Bankruptcy, Shutters Business

Nanny Bloomberg is probably a happy nanny today as Hostess brings Halloween to mid-November

(WRAL) Hostess Brands Inc. filed for bankruptcy early Friday, announcing it has shuttered operations and ended production of the snack cakes and breads known to generations of Americans.

The Texas-based company said in a statement on its website that it will try to sell its assets, including the iconic Twinkies, Ding Dong and Wonder bread brands. Bakery operations have been suspended at all 36 plants, including one in Rocky Mount, following a weeklong strike by thousands of workers protesting 8 percent wage cuts and benefit concessions.

No more Twinkies, cupcakes (those baseball ones were awesome), cinnamon streusel coffee cakes, Suzy Q’s, donuts, mini muffins, pastries, pies, and sno balls (gross). All gone. And it looks like Hostess really means business, since they even shut down their website. Oh, hey, look

In its statement, Hostess said the strike “crippled the company’s ability to produce and deliver products at multiple facilities.”

“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.”

Certainly, Hostess had financial issues to start with, and the strike by the union employees killed the company. So, instead of seeing an 8 percent wage cut and benefit concessions, the workers get a 100% cut.

Despite annual sales of $2.5 billion, the company said its current cost structure was unprofitable, largely because of union wages and pensions.

Sound familiar?

More: Memeorandum is running a few threads on this. Not quite sure what prompted pictures of Mick Jagger to be next to the NBC story. Wouldn’t Woodie Harrelson make more sense?

Anyhow, Hostess has released a statement on what is going on. Others covering include: Politico, Michelle Malkin, Hot AirThe Lonely Conservative, www2.wkrg.com and The Gateway Pundit as well as Weasel Zippers, The Right Scoop, LewRockwell.com Blog, Gawker, This Just In and Guardian

DrewM:

“People voted for irresponsibility, now they must get it. No soft landings, no pity. It’s time for harsh lessons to be learned.”

Sounds like a microcosm of the economic state of America.

Oh, and since someone asked in an email, yes, there is a point to the weasel eating Twinkies photo. Think about it.

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3 Comments

Comment by Patrick in Michigan
2012-11-16 16:03:45

Oh noes! what will we fat people do?!!

 
Comment by Gumball_Brains Subscribed to comments via email
2012-11-16 22:54:09

what will i spend my food stamps on now?
guess I’ll have to stick to lobster, crab legs and porter house steaks.

ALSO… Dolly Madison is part of this liquidation. And any other subsidiary of hostess.

Gonna miss those zingers.

 
Comment by Gumball_Brains Subscribed to comments via email
2012-11-16 22:55:33

OH.. something else.
The leader of the union stated in news bleep that he is “confident that a buyer can be found so operations can be resumed and a better employment contract can be achieved”.

 

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