IRVING, Texas — Hostess Brands Inc. — maker of iconic snack foods such as Twinkies, Ding Dongs and Ho Ho’s — has filed a motion with the U.S. Bankruptcy Court seeking permission to close its business and sell its assets.
According to an announcement posted Friday morning on the company’s website, bakery operations have been suspended at all plants. Delivery of products will continue and Hostess Brands retail stores will remain open for several days in order to sell already-baked products.
Hostess says its Board of Directors authorized the wind down after one of the company’s largest unions — the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) — initiated a nationwide strike that crippled the company’s ability to produce and deliver products at multiple facilities.
“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” said Gregory F. Rayburn, chief executive officer.
Hostess says it will lay off most of its 18,500-member workforce and close 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores throughout the U.S.