Hostess has announced it plans to go out of business, lay off workers, and sell its brands.
FOX News Radio’s Chris Foster reports:
18,500 Hostess employees staying home for breakfast and the rest of the day: Laid off, or will be soon, with the company shutting down and putting its brands up for sale:
Wonder Bread, Twinkies, Ho Hos, Drake’s Cakes, Dolly Madison, and a lot more.
A strike started last week, severely slowing down production and delivery. And now the CEO says all of those employees will lose their jobs.
Hostess, based in Irving, Texas, has been around since 1930.
Chris Foster, FOX News Radio.
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Below, read a letter to Hostess customers posted on the Hostess brands website:
Letter to Hostess Brands Customers
Dear Loyal Customer,
I must regretfully inform you that Hostess Brands has shut down all operations and will be pursuing the sale process of all of our brands and Company assets. Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands.
For many months now, the Company has been working with our unions, lenders and other stakeholders to reach a consensual resolution to legacy costs and labor contracts. Despite everyone’s considerable efforts, when we began implementing the Company’s last, best and final offer, the Bakers Union chose to stage a crippling strike. This affected our ability to continue to make products and service our customers’ needs and pushed Hostess Brands into a Wind Down scenario. As a result, the Company was forced to proceed with an orderly wind down and sale of our operations and assets. We deeply regret taking this action. But we simply cannot continue to operate without the ability to produce or deliver our products.
Hostess Brands will sell its popular cake snack brands, including Twinkies®, CupCakes®, Ding Dongs®, Ho Ho’s®, Sno Balls®, Donettes®, Drake’s® cakes and Dolly Madison®. Bread brands to be sold include Wonder®, Nature’s Pride®, Merita®, Home Pride®, Butternut®, and Millbrook®, among others.
This Wind Down announcement brings our current relationship to an end and I want to take this time to thank you for your continued support and loyalty throughout the past several years.
It has been a great pleasure working with you and I wish you all the best in the future. Attached is an information sheet to help address your concerns.
Sincerely, Rich Seban Executive Vice President & Chief Marketing Officer Hostess Brands, Inc.