Laying off 18,000 workers and selling brands following labour strike.
November 16, 2012
by ASSOCIATED PRESS
IRVING, Texas — Hostess Brands says it’s going out of business, closing US plants that make Twinkies and Wonder Bread and laying off all of its 18,500 workers.
The Irving, Tex. company says a nationwide worker strike crippled its ability to make and deliver its products at several locations.
Hostess had warned employees that it would file a motion in US Bankruptcy Court to unwind its business and sell assets if plant operations didn’t return to normal levels by Nov. 15.
The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.
Hostess Brands has bakery operations across the US but other companies make several of its brands for the Canadian market.
George Weston Ltd. of Toronto counts Wonder Bread among its brands while Montreal-based Saputo has rights to the Hostess brand in Canada but doesn’t include Twinkies among its current line-up of snack cakes.