Twinkie-maker Hostess to go out of business, laying off 18K workers
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CHICAGO (Sun-Times Media Wire) -
Hostess Brands Inc., maker of the iconic Twinkie pastry, announced Friday that the company will seek to disband and go out of business -- in the process laying off more than 18,000 workers.
The Irving, Texas-based company is blaming the planned shut-down of operations on striking workers who have opposed benefit, wage and pension concessions the company sought, according to a statement issued Friday morning.
In fact, since Nov. 14, the company has warned it would "be forced to liquidate" if employees did not return to work, according to the release.
"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," Gregory F. Rayburn, Hostess chief executive officer, said in the release. "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."
The wind down of the business was authorized by the company's board of directors "to preserve and maximize the value of the estate," according to the release.
The company, which owns a bakery in suburban Schiller Park, has filed a motion in U.S. Bankruptcy Court seeking to close business, and sell it's assets, including popular pastries such as the Twinkie.
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