Saturday, October 25, 2014

Hostess to wind down operations, lay off 18,000 workers and sell brands following labour strike

IRVING, Texas — Hostess Brands says it is going out of business, closing U.S. plants that make Twinkies and Wonder Bread and laying off all of its 18,500 workers.
The Irving, Texas, company says a nationwide worker strike crippled its ability to make and deliver its products at several locations.

Hostess had warned employees that it would file a motion in U.S. Bankruptcy Court to unwind its business and sell assets if plant operations didn’t return to normal levels by Thursday evening.
The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.
Hostess Brands has bakery operations across the United States but several of its brands are made for the Canadian market by other companies.
George Weston Ltd. of Toronto (TSX:WN) counts Wonder Bread among its brands while Montreal-based Saputo has rights to the Hostess brand in Canada but doesn’t include Twinkies among its current lineup of snack cakes.

More stories