US: Hostess to wind up if strike continues

By Katy Askew | 15 November 2012

Hostess warnes on liquidation

Hostess warnes on liquidation

US baker Hostess Brands has indicated it will liquidate the company tomorrow (15 November) if striking employees fail to return to work this evening.

The group, which manufactures brands including Nature's Pride and Wonder Bread, said it lacks the "financial resource" to survive an ongoing national strike.

If "enough striking employees" fail to return to work by 5pm ET today the group will seek bankruptcy court approval to liquidate the entire business. The closure would result in the loss of nearly 18,000 jobs.

The Bakery, Confectionary, Tobacco Workers and Grain Millers Union - which represents 5,680 Hostess workers - launched a strike last Friday. The union is protesting against an 8% cut to pay, which is effective immediately, and further deep cuts to benefits the union said would reduce members earnings by around 30%.

Show the press release

Hostess to Liquidate if Strikes Impede Normal Operations Past 5 p.m., EST, Thursday
IRVING, Texas, Nov. 14, 2012 /PRNewswire/ -- Hostess Brands Inc. announced today that it will file a motion with the U.S. Bankruptcy Court on Friday to liquidate the entire Company if enough striking employees do not return to work by 5 p.m., EST, Thursday to enable the Company to resume normal operations. The strikes were called on November 9 by the Bakery, Confectionery, Tobacco Workers and Grain Millers Union (BCTGM).

"We simply do not have the financial resources to survive an ongoing national strike," said Gregory F. Rayburn, the Company's Chairman and CEO. "Therefore, if sufficient employees do not return to work by 5 p.m., EST, on Thursday to restore normal operations, we will be forced to immediately move to liquidate the entire Company, which will result in the loss of nearly 18,000 jobs. It is now up to Hostess' BCTGM represented employees and Frank Hurt, their international president, to decide if they want to call off the strike and save this Company, or cause massive financial harm to thousands of employees and their families."

Hostess has done everything in its power to pursue a reorganization of its business as a going concern, including spending the better part of 18 months negotiating with its key constituents to obtain a consensual agreement. As previously disclosed, the Company has obtained the support of its largest union, the International Brotherhood of Teamsters, and its lenders. With the support of the BCTGM, Hostess believes it would successfully reorganize.

If sufficient employees do not return to work by the deadline to restore normal operations, the liquidation process will unfold as follows:

Hostess will file a motion with the U.S. Bankruptcy Court on Friday, November 16, 2012 requesting to wind-down the Company and sell all of its assets; Hostess has requested a hearing on the motion for Monday, November 19, 2012; If the motion is granted at this hearing, Hostess Brands will begin to close all of its operations as early as Tuesday, November 20, 2012. The closures will include the termination of all employees except small, temporary crews to clean, secure and prepare facilities and other assets for sale. Additional information about the Company's labor issues can be found at

About Hostess Brands
Founded in 1930 and based in Irving, Texas, the Company's products include iconic brands such as Hostess®, Wonder®, Nature's Pride®, Dolly Madison®, Drake's®, Butternut®, Home Pride® and Merita®. Hostess Brands has approximately 17,780 employees and operates 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores throughout the United States.

Original source: Hostess Brands Inc.

Sectors: Bakery

Companies: Hostess Brands

View next/previous articles

Currently reading -

US: Hostess to wind up if strike continues

There are currently no comments on this article

Be the first to comment on this article

Related articles

The week ahead - Wal-Mart Q1s, Post Holdings H1, ProTerra conference

US breakfast cereal group Post Holdings kicks off a relatively quieter week of results with its half-year numbers on Monday. On Tuesday, meat giants Marfig and JBS will report on how it fared in the first three months of the year - as will Wal-Mart on Thursday. The week also includes an international conference in the Netherlands looking at the sustainable cultivation of soy.

US: Hostess Brands to open more plants as returns to production

The new Hostess Brands has announced plans to re-open plants in Indiana and Illinois as the US baker looks to rebuild its production network.

US: Hostess relaunches bakery production

Hostess Brands - a new company formed by private-equity owners following the auction of assets owned by the US baker of the same name - is preparing to relaunch bakery operations.

Read more on this hot issue

US baker Hostess Brands to wind up business

A national strike from workers has, the company said, forced it to wind up the business, which owns brands including Hostess and Twinkies.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page