Maker of Twinkies Going Out of Business

Reported by: Phil Campbell
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Updated: 11/16/2012 6:56 pm
 

Hostess, the maker of Twinkies and Wonder Bread, plans to go out of business, lay off its 18,500 workers and sell its brands.

The Irving, Texas, company said a nationwide strike crippled its ability to make and deliver its products, which also include Ding Dongs and Ho Ho's.

The news spread through the social media and created a rush for local retailers.

Hostess has suspended bakery operations in all of its factories and said its stores will remain open for several days to sell already-baked products.

The company had warned employees that it would file a motion in U.S. Bankruptcy Court to unwind its business and sell assets if plant operations didn't return to normal levels by Thursday evening. The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.

Still the news was difficult to swallow for many who feel like they are losing a piece of their childhood.

“It’s just a sad day that we are going to be losing a company that has been around for a long time,” said a loyal Hostess customer.

“I just remember eating them when I was a kid and always growing up with them,” said a Hostess fan from Blackfoot. “I don’t know, it’s going to be sad.”

The news spread quickly as many people from throughout eastern Idaho raced to the Hostess discount stores to get their hands on the iconic brands.

“Twinkies,” said a young child.

“Twinkies,” said another child from Blackfoot.

“I like Ho Ho’s but my family likes the Zingers,” said a woman from Pocatello.

Twinkie the Kid would have turned 86 next year.

The company, founded in 1930, was fighting battles beyond labor costs. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating. Hostess also makes Dolly Madison, Drake's and Nature's Pride snacks.

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newswatcher - 11/16/2012 5:25 PM
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Why don't you also report this little tidbit? "But while headlines have been quick to blame unions for the downfall of the company there’s actually more to the story: While the company was filing for bankruptcy, for the second time, earlier this year, it actually tripled its CEO’s pay, and increased other executives’ compensation by as much as 80 percent." http://thinkprogress.org/economy/2012/11/16/1203151/why-unions-dont-shoulder-the-blame-for-hostesss-downfall/ I think it's irresponsible to report so narrowly. You act like it's so sad, but why don't you report the truly sad part? People are losing their jobs while a few rich guys can get richer. It would be nice if you guys would look at more than one side of the stories you cover! I'm very disappointed.
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