Hostess to Shut Down After Strike
Hostess Brands Inc., the maker of iconic treats like Twinkies and traditional pantry staples such as Wonder Bread, is liquidating its 82-year-old business, putting more than 18,000 workers out of jobs just before the holidays.
A victim of changing consumer tastes, high commodity costs and, most importantly, strained labor relations, Hostess ultimately was brought to its knees by a national strike orchestrated by its second-largest union.
The work stoppage, launched Nov. 9 by the Bakery, Confectionery, Tobacco Workers and Grain Millers Union in protest of a fresh labor contract, affected about two-thirds of Hostess’s 36 plants. The striking workers–who still numbered in the thousands–were making it impossible for the Irving, Texas, company to continue producing its baked goods, Chief Executive Gregory Rayburn said.
The CEO, a restructuring professional who ascended to the top of the company after its former leader abruptly resigned earlier this year, said the wind-down will take months but require few workers.
"We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike," Mr. Rayburn said in a statement Friday. He said the company will "promptly" lay off most of its 18,500 employees and focus on "selling its assets to the highest bidders."
Not that it is all the Unions’ doing, but they seemed to attack this just like our politicians did the disaster heading our way last year during the election… They can’t keep kicking the can down the road… expecting more and more and paying less and less. At some point we have to agree that the answer to all our problems is not government intervention and help… maybe the answer is that we need to figure out how to take care of our own.
REX