Hostess, company behind Twinkies, to close
Twinkies may not last forever after all.
Hostess Brands Inc., the maker of the spongy snack with a mysterious cream filling, said Friday it would close after years of struggling with management turmoil, rising labor costs and the ever-changing tastes of Americans.
Some of the company's beloved brands such as Ding Dongs and Ho Ho's likely will be snapped up by buyers, but for now the company says its snack cakes should be on shelves for another week or so. The news stoked an outpouring of nostalgia online, as people relived childhood memories of their favorite goodies.
Hostess, whose roster of brands dates as far back as 1888, had struggled with debt and management changes.
In January, the company filed for Chapter 11 bankruptcy protection for the second time in less than a decade. Then, last week, thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike after rejecting the company's latest contract offer, which included pension and wage concessions.
Although many workers decided to cross picket lines this week, Hostess said it wasn't enough to keep operations at normal levels.
The company filed a motion to liquidate Friday with U.S. Bankruptcy Court. The shuttering means the loss of about 18,500 jobs.
Hostess said employees at its 33 factories were sent home and operations suspended. Its roughly 500 bakery outlet stores, including at least one on Long Island, on Route 110 in Melville, will stay open for several days to sell remaining products.-- AP