Hostess Brands May Close Down If Striking Workers Don't Return
Sorry, sugar lovers. Looks like there's a good chance that Hostess's Twinkies — that iconic "Golden Sponge Cake with Creamy Filling" snack that has been around since 1930 — might be closing its doors forever.
Hostess Brands Inc. said that it will seek permission from a U.S. bankruptcy judge to liquidate as soon as November 20, 2012, if its workers, who are currently on strike, do not return to work by later today. This addresses a longstanding dispute between Hostess and the Bakery, Confectionery, Tobacco Worker and Grain Millers International Union, members of whom comprise about one-third of the Hostess employees, reports MSN.
"We simply do not have the financial resources to survive an ongoing national strike," said Hostess Chief Executive Gregory Rayburn. Workers have until 5 p.m. EST today to return to work, and if they don't, the Irving, Tex.-based company will shut its doors, firing all employees except those who are needed to help with shutdown and sale of facilities.
"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," he said.
Translation to the average consumer? Get to the store and stock up on Twinkies now.