On Nov. 21, Hostess announced that it would be closing and ceasing manufacturing after the “U.S. Bankruptcy Court for the Southern District of New York approved the emergency interim motion” to liquidate its assets.
The closure comes after Hostess Brands failed to reach an agreement with the Bakery, Confectionery, Tobacco and Grain Millers Union after employees went on a nationwide strike. Employees went on strike after the company announced that wages would be cut by eight percent, and benefits cut by 27 to 32 percent, ABC News reported.
After a week of striking, Hostess announced that it could no longer afford to continue producing.
“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” chief executive officer Gregory F. Rayburn said in a press release.
Hostess also announced that approximately 94 percent of its employees would be let go within the first 16 weeks of it shutting down its business, but that 3,200 of its employees will be retained during the first phase to assist with the shut down.
The closing of Hostess manufacturers will result in the shutting down of 33 bakeries, 565 distribution centers, and 570 bakery outlet stores, including one in Cheyenne, amounting to about 18,500 jobs.
In addition to the well-known Twinkie® product, Hostess also produced items such as CupCakes, Ding Dongs®, Sno Balls® and was responsible for such brands as Wonder®, Home Pride®, Dolly Madison®, and Nature’s Pride®.
As a result of the closure, Hostess will sell off many of its brands.
“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,” Rayburn said.
The liquidation of Hostess Brands has also hit Wyoming as three Hostess employees in Riverton have lost their jobs.
The employees worked at the Hostess distribution center in Riverton which is now closed in addition to the distribution centers in Casper and Gillette, the Associated Press reported.
