Hostess to Shut Down After Striking Workers Miss Deadline

The Twinkies-maker will lay off all 18,500 workers

   

Hostess to Shut Down After Striking Workers Miss Deadline

pack twinkie 300x198 Hostess to Shut Down After Striking Workers Miss DeadlineIt’s the end of Hostess Brands. After its bakers union failed to comply with a deadline to return to work by Thursday afternoon, the company announced that it would begin winding down operations.

Striking workers had halted production at 12 of its 33 facilities. This week, company executives repeatedly warned the union that Hostess didn’t have the financial resources to weather a prolonged strike and threatened to shutter the business if the strike didn’t end, the Associated Press noted.

jobless unemployment 630 200x200 Hostess to Shut Down After Striking Workers Miss Deadline
Texas Instruments to Slash 1,700 Jobs

Hostess will layoff all 18,500 workers and will begin looking for buyers for its well-known snack-food brands. In a message posted on the company’s website, Hostess’ CEO said that some employees would be laid off immediately, while others would stay one until the business was shut down.

The maker of iconic snack food brands, including Twinkies and Ding Dongs, as well as Wonder Bread, entered Chapter 11 bankruptcy earlier this year, marking the company’s second trip through bankruptcy in a decade. Earlier this year, it negotiated a new contract with the Teamsters, its largest union.

But the Bakery, Confectionery, Tobacco Workers & Grain Millers International Union rejected wage cuts back in September. Last week, that union went on strike, leading to the closure of some facilities.


Article printed from InvestorPlace Media, http://investorplace.com/2012/11/hostess-to-shut-down-after-striking-bakers-miss-deadline/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.