Bye Bye Twinkies – Hostess Going Out Of Business
Better rush to the stores and stock up on Twinkies, Hostess has announced they are going out of business. That means Ding Dongs, Wonder Bread, and other iconic brands will soon be a thing of the past. But why is this happening?
Hostess has had a long standing issues with their two workers unions. The major union, The International Brotherhood of Teamsters, had reached an agreement with the company but it was the secondary union that went on strike last week after rejecting a contract offer in September. That contract was to cut wages and benefits.
Hostess CEO Gregory F. Rayburn said if the workers did not return to work by 5pm Thursday, the company would file for Chapter 11 with the U.S. Bankruptcy Court. Now comes the cuts of more 18,500 workers in 33 bakeries, 565 distribution centers, 5,500 delivery routes, and 570 bakery outlets.
During the strike, many workers crossed the line to return to work even though their union threatened to fine them for doing so. However, according the Mr. Rayburn, it wasn't enough to resume normal production for the company.
The company filed for Chapter 11 protection back in January, the second time in doing so in the last decade, due to "rising pension and medical cost". Hostess made concessions with their employees to come out of the protection a short time later but now the doors are closing forever. The company plans to sell off some assets and close their doors as early as Tuesday next week.
An era has come to an end. Twinkies were supposed to be that one food that would last even if the world ended tomorrow. We're less then a month away from the purposed "end", so you better stock up now for the Apocalypse.