Hostess business has gained court approval for close down, which means more than one bad news. Twinkies Hostess brand, will cease to exist and 18,500 jobs will be cut, after last-minute negotiations between Hostess business and the Bakery, Confectionery, Tobacco and Grain Millers Union failed.
Hostess will sell of its brands Twinkies, Wonder Bread, Ding Dongs and Ho Hos due to the failed talks between the Hostess business and the striking union which included about 5,000 Hostess workers.
According to analysts, possible bidders for the brands are Nature’s Own parent Flowers Foods Inc., Sun Capital Partners Inc., Sara Lee owner Grupo Bimbo, Pabst Blue Ribbon owner C. Dean Metropoulos & Co. and investment firm Hurst Capital.
Last week, chaos spread as Hostess went bankrupt and declared that it would be closing down, affecting 18,500 jobs. However, Hostess decided to give one last try at making peace with the striking workers union. But, the talks did not yield the desired results and the biggest sufferers of Hostess business’ bankruptcy are the employees who poured out their concerns on Twitter.
@NikkiKiley1 tweeted: “I’m so sad Hostess went out of business. My dad lost his job and I will never get to eat a Twinkie again. What a bad day.”
Hostess said that it would cut its workers to 3,200 in the coming months and those remaining would stay until the liquidation is done, which is said to take a year. The entire Hostess business will be closed down – meaning 33 bakeries, 565 distribution centers and 570 bakery outlet stores nationwide will cease to exist.
Hostess filed for bankruptcy in January for the second time in ten years and on Friday, it moved to shut down its operations, blaming the union strike that “crippled its operations at a time when the company lacked the financial resources to survive a significant labor action.”