Friday, November 16, 2012

Hostess going out of business

Via Don

Thanks to Obama loving unions.  Hopefully someone will buy everything and move to Tarboro where they will have no unions to deal with.:)

Hostess is going out of business.  The company, which has a bakery in Emporia, is the maker of long-standing brands such as Twinkies, Ding Dongs and Wonder Bread.

According to a post on a company website, Hostess Brands, Inc. says it is winding down operations and has filed a motion with the U.S. Bankruptcy Court asking for permission to close its business and sell its assets.

Bakery operations are suspended at all plants.

The company says delivery of products will continue and Hostess Brands retail stores will remain open for several days so they can sell off already-baked products.

The Board of Directors authorized the wind-down in order to preserve and maximize the value of the estate after one of the company's largest unions initiated a nationwide strike.

The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike last weekend.  The company shut down three plants and said it would liquidate if they didn't have enough employees return to work by Thursday afternoon.

"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."

More @ KWCH

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