IRVING, Texas (AP) - Hostess, the
maker of Twinkies and Wonder Bread, is going out of business, closing plants,
laying off its 18,500 workers and putting its brands up for sale.
The Irving, Texas, company said a
nationwide worker strike crippled its ability to make and deliver its products.
Its brands also include Ding Dongs, Ho Ho's and Dolly Madison.
Hostess had warned employees that it
would file a motion in U.S. Bankruptcy Court to unwind its business and sell
assets if plant operations didn't return to normal levels by Thursday evening.
The privately held company filed for Chapter 11 protection in January, its
second trip through bankruptcy court in less than a decade.
"Many people have worked
incredibly long and hard to keep this from happening, but now Hostess Brands
has no other alternative than to begin the process of winding down and
preparing for the sale of our iconic brands," CEO Gregory F. Rayburn said
in a letter to employees posted on the company website.
He added that all employees will
eventually lose their jobs, "some sooner than others."
Thousands of members of the Bakery,
Confectionery, Tobacco Workers and Grain Millers International Union went on
strike last week after rejecting in September a contract offer that cut wages
and benefits. Hostess had already reached a contract agreement with its largest
union, the International Brotherhood of Teamsters.
Hostess has said that production at
about a dozen of the company's 33 plants has been seriously affected by the
strike. Three plants were closed earlier this week.
The company, founded in 1930, was
fighting battles beyond labor costs. Competition is increasing in the snack
space and Americans are increasingly conscious about healthy eating. Hostess
also makes Dolly Madison, Drake's and Nature's Pride snacks.