One week after a nationwide union strike over employee wage cuts and pension restrictions, Hostess CEO Gregory Rayburn says the bankrupt, 82-year-old company will close.
Leading up to this announcement, Rayburn demanded that workers on strike get back to the Hostess plants, many of which were operating at only 50 percent. On Monday, 627 employees were fired and three plants shut down. Now, Hostess has announced its decision to lay off almost all of its 18,500 employees, shut down all plants and distribution centers, and sell company assets to the highest bidders.
Is there a future for Ding Dongs, Wonder Bread, and Twinkies?
It’s not clear yet if the company’s iconic brands will sell to another large food manufacturer. Either way, as the bakeries shut down, the everlasting, wrapped confections are likely to be sold at discount, in bulk, and hoarded lovingly by die-hard fans across the country.