Hostess to Liquidate After Bakers Union Refuses to Stop Strike: Customers Say Farewell to Twinkies
Posted on November 16, 2012
The Wall Street Journal reports that Hostess Brands Inc., the maker of Wonder Break, Ding Dongs, Sno Balls and Twinkies, has filed papers in bankruptcy court to liquidate the company and fire more than 18,500 workers.
The company has been in Chapter 11 bankruptcy and planned to reorganize, but threatened it would have to shut down if the Bakers Union did not end its strike, and accept the court-ordered new contract which called for an 8% cut in pay. The Teamsters Union settle its dispute and was abiding by the new contract, but the Bakers Union wouldn't budge. Hostess called its bluff and filed for liquidation this morning, saying it cannot operate with its workers on strike.
The AP takes a look at customer stocking up on Twinkies and Sno Balls and talks to an analyst who says Twinkies aren't going anywhere: another firm will most likely buy the brand out of the liquidation. That's not certain, however. Twinkies may be gone forever. Take a look: