State fair vendors across the nation might be stockpiling like crazy today as Hostess Brands, makers of the Twinkie and other processed pastry treats, announced it has ceased production and is filing federal bankruptcy to close operations.
The company is also known for such products as Ding Dongs, Sno Balls, Fruit Pies, and Wonder Bread. According to CNN Money, the food makers are blaming a strike by bakers as their reasons for needing to close. The bakers were protesting a new contract that was recently imposed on them. The contracts cut salaries, pensions, and health care contributions.
If the company is granted permission by the courts to close their doors, more than 18,000 employees will lose their jobs, 33 bakeries and distribution centers will close, along with nearly 600 outlet stores.
Does this mean the end to the iconic Twinkie or its cult classic “The Deep Fried Twinkie?” cousin? Not necessarily. The report states that Hostess will attempt to liquidate its assets and that may mean another brand may bid for the rights to the Twinkie. However, the company cannot sell anything off until the courts have approved their bankruptcy. For now, the last shipments of Hostess foods was made Thursday night. Stores will continue to sell the products until they’re gone. (more…)
