Twinkie Maker Hostess to Close
By RACHEL FEINTZEIG
Hostess Brands Inc., the maker of iconic treats such as Twinkies and traditional pantry staple Wonder Bread, is shuttering its plants and liquidating its 82-year-old business.
A victim of changing consumer tastes, high commodity costs and, most importantly, strained labor relations, Hostess ultimately was brought to its knees by a national strike orchestrated by its second-largest union.
The work stoppage, launched Nov. 9 by the Bakery, Confectionery, Tobacco Workers and Grain Millers Union to protest a fresh labor contract, affected about two-thirds of Hostess's 36 plants. The strike was making it impossible for the Irving, Tex., company to continue producing its baked goods, Chief Executive Gregory Rayburn said.
The CEO, a restructuring professional who ascended to the top of the company after its former leader abruptly resigned earlier this year, said the liquidation will take months but require few workers.