“It’s over. This is it,” Gregory Rayburn tells "Today."
Hostess, the makers of Twinkies, Ding Dongs and
Wonder Bread, is going out of business after striking workers failed to
heed a Thursday deadline to return to work, the company said.
“We deeply regret the necessity of
today’s decision, but we do not have the financial resources to weather
an extended nationwide strike,” Hostess CEO Gregory F. Rayburn said
in announcing that the firm had filed a motion with the U.S. Bankruptcy
Court to shutter its business. “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.”
Hostess Brands Inc. had earlier warned employees that
it would file to unwind its business and sell off assets if plant
operations didn't return to normal levels by 5 p.m. Thursday. In
announcing its decision, Hostess said its wind down would mean the
closure of 33 bakeries, 565 distribution centers, approximately 5,500
delivery routes and 570 bakery outlet stores in the United States.
Hostess suspended bakery operations
at all its factories and said its stores will remain open for several
days to sell already-baked products.
The Irving, Texas-based company had
already reached a contract agreement with its largest union, the
International Brotherhood of Teamsters. But thousands of members in its
second-biggest union went on strike late last week after rejecting in
September a contract offer that cut wages and benefits.
Officials for
the Bakery, Confectionery, Tobacco Workers and Grain Millers
International Union say the company stopped contributing to workers'
pensions last year. (Continues)
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