Twinkies Maker Hostess Going Out of Business, CEO Blames Union Strike

November 16, 2012 @

Hostess, the makers of Twinkies, Ding Dongs and Wonder Bread, is going out of business after striking workers failed to heed a Thursday deadline to return to work, the company said.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” Hostess CEO Gregory F. Rayburn said in announcing that the firm had filed a motion with the U.S. Bankruptcy Court to shutter its business. “Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”

Hostess Brands Inc. had earlier warned employees that it would file to unwind its business and sell off assets if plant operations didn’t return to normal levels by 5 p.m. Thursday. In announcing its decision, Hostess said its wind down would mean the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores in the United States.

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

The Irving, Texas-based company had already reached a contract agreement with its largest union, the International Brotherhood of Teamsters. But thousands of members in its second-biggest union went on strike late last week after rejecting in September a contract offer that cut wages and benefits. Officials for the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union say the company stopped contributing to workers’ pensions last year.

Read More at nbcdfw.com.

By soupmastergeneral (Creative Commons)

17 Comments → “Twinkies Maker Hostess Going Out of Business, CEO Blames Union Strike”


  1. steve

    6 years ago

    Unions, as American as Borcht, in bed with the demonrat party, and driving the prices of everything sky high through extorted acceptance of low quality and less work performance!


  2. CHARLES

    6 years ago

    THEY PICKED ONE HECK OF A TIME TO PULL A STRIKE!!!!THEY GOT IT THROWN RIGHT BACK IN THEIR FACES. PLUS, LOOK AT THE TIMING—-THE HOLIDAYS COMING UP!!THE UNION DOESN’T GIVE A @%*& !!! THEY STILL PULL THEIR SALARIES. IN ESSENCE, THE WORLD HAS FALLEN IN ON THE WORKERS.IN A WAY, I FEEL SORRY FOR THEM, AND THEIR FAMILIES. I GUESS THEY WILL PICK UP UNEMPLOYMENT, BUT HOW LONG DOES THAT LAST?


  3. Doug Rodrigues

    6 years ago

    It’s too bad that this problem didn’t happen before the elections. Sadly, there will be more businesses shutting down because they cannot afford to stay in business with the increasing taxing upon them for “Obama care.” Of course, Obama will be gleeful knowing that the economy is creeping closer to the big crash, because he’ll be able to manipulate his Socialism “change” with less problems.


  4. Mamooska

    6 years ago

    I don’t feel sorry for them. You reap what you sow. Hostess told them they were going to do it and the workers thought they were bluffing. Time to let the company run the company and decide what the wages and benefits will be not the Unions and their minions. I would have gladly taken an 8% (which actually turns out to be 4% after they were going to do a giveback the next couple of years). We took a 100% pay cut when our business failed under this incompetent, mafia-style administration. And because we owned our business, we didn’t even see a dime of unemployment. Other companies will follow. You watch. You will not even recognize this country in 4 years. Sad thing is there is no where else to go. This was the last hope. When you ask God why he has forsaken us, he will tell you that it is because we have turned our backs on Him. Where is Ronald Reagan when we need him?


  5. Ed Watson

    6 years ago

    Duh. What did they expect but that the company would fold and guess what – if you can’t you can’t and now live in the bed and like it. Others will follow. It is too bad GN didn’t do thatbut instead chose to go the China. How about that.


  6. Mary Steele

    6 years ago

    Mr. Watson,

    Come on to Virginia, a Right to Work state, so you don’t have to deal with the union thugs!!

    I will help you relaunch here!

    Mary Steele
    Office Support Services
    217 Church Road
    Yorktown, VA 23690

    757-887-6629
    866-887-6629


  7. gavinwcaf

    6 years ago

    It is amazing how modern ceo’s , in conjunction with the Unions have managed to destroy some of the olest and most respected businesses in America. Keep it up fellows and we all will be eating that Algie you want to grow to manufacturing power.


  8. gavinwca

    6 years ago

    obummerclause and his minions strike again.


  9. Fideux

    6 years ago

    That’s okay’ there are plenty of Ding Dongs in Washington DC, and plenty of Twinkies in San Francisco and the Bay Area. Don’t forget the Ho Ho’s in Detroit and Chicago!


  10. Pat

    6 years ago

    Fideux, Thanks for a good laugh….these days we need all the laughs we can get to keep from crying….


  11. AZ Bob

    6 years ago

    There is more to this story than being told. Was the union wrong, maybe. The only power a union has is in the strike clause, if they have one?? Was the company open to there reasons why after changing their union pension plans last year and under the new contract the start would be union wage cuts. Were they also trying to take away the collective bargaining also?? If the Company refused to discuss the financial problems with the company because of the economy and maybe the union saw the only sacrifices that would be made was to the union workers and not management they would have no option other than strike.Goodfaith bargaining is required on both sides when you have collective bargaining agreements.I am not a union sympathizer but they have there uses in some instances. The vote is over and all Democrats are not the radical communists you see spouting off there mouths.


  12. Tacoma Gus

    6 years ago

    AZBob, you might want to separate yourself from the foolish, the stupid, the selfish and the ignorant of the democrat party, but look what you voted in! The cause of all this CR#P. You are colored by your choices and you and to many others were stupid beyond belief. I just wonder how many of the stupid were in the Hostess ranks?


  13. Doug Rodrigues

    6 years ago

    I’ll admit to being retired but working a low paying “retirement” job. I’m down to 20 or so hours a week. If I were to make demands on the company, I would deserve to be fired. Why? Because I can see that the company I work for is barely scraping by. It amazes me that they remain in business. I would have closed a long time ago and probably saved money.


  14. ONTIME

    6 years ago

    It’s really a shame that union leadership has the right to take money from paychecks without the members being able to vote on a yearly basis to insure union ledership performance and the unions want card check to keep the membership in check, that’s a bit one sided I think. That’s bad news for private sector unions and a government union is just a joke to steal money and votes from the public, government unions need to be decertified and banned, they make every thing cost more and government is already far to expensive….

    You in the private sector need to get your leadership in check and stop paying dues to bad union leadership, and theft….


  15. O'William

    6 years ago

    Could it be that Hostess will soon be govt/union-owned, taken over with taxpayer money like GM?


  16. judi

    6 years ago

    They never talk about how much the union members wanted, what their benefits are, how much the union bosses make…. etc. etc. How can you form an opinion without all the facts? Were they making minimum wage? Did they have a medical plan? Did they have a matching 401k? As far as what the CEO makes, well, they all make too much I guess, but they are typically the ones that created the company and it’s not an easy road in most cases… I just want all the info.


  17. Gary o. summitt

    6 years ago

    The ceo raised his salary to 2.5 million / yr. While wanting to cut 13.00 / hr. Employees benefits by stopping the company’s contribution to their 401k.
    That’s the problem in a nutshell. Until companies stop this un equal pay scale; we will never have a middle class or tax base. The minimum wage should be 18.00/ hr. Those 13.00 / hr. Jobs should have been 21.00 / hr and the ceo salary should have been 400k / with 10% bonus if the company made a profit for the year.


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