October 31, 2014 | Updated at 11:27 AM EDT The Latest Entertainment & Celebrity News

Hostess Closes; Twinkies Maker Approved To Liquidate Assets

The Twinkies maker calls it quits after going to bankruptcy court.

By Dexter Keyton, EnStars on Nov 22, 2012 10:46 AM EST
facebook tweet this pin it plus
Sign Up for Newsletter
  • Hostess Twinkies
  • A box of Hostess Twinkies is seen on the shelves at a Wonder Bread Hostess Bakery Outlet in Glendale, California, in this November 16, 2012, file photo. (Photo : Reuters)

Hostess is officially closed.

The 82-year-old Twinkies producer called it quits while the assets of the company are liquidated. A bankruptcy court ruled on Wednesday that the company can begin shutting down operations, according to Reuters.

One final attempt was made to rectify the situation by a judge with the U.S. Bankruptcy Court. A meditation failed between Hostess Brands Inc. and the Bakery Union blamed for the downfall of the company.  

18,000 jobs in total will be lost with 15,000 immediately discharged, according to the Chicago Tribune.

The company angered many workers this week when Hostess attempted to give their senior management a 75 percent bonus of their annual pay to try and persuade them to stay onboard, while the company started to wind-down. However, a U.S. Trustee agent stopped the plan and said it was unfair and an improper use of the company's final funds.

While the company distributes their assets, Gregory Rayburn, CEO of Hostess Brands, expressed his optimism. During an interview with ABC News he remarked: "I think we'll find buyers.  A few have surfaced already since Friday expressing interest in the brand to acquire them."

And there certainly are buyers ready.

According to Fox News, one of the companies seeking ownership is El Grupo Bimbo, the largest bread-baking company in the world that is based in Mexico. The acquisition of Hostess Brands will add to the list of well-known U.S. companies owned in part by Bimbo, which include Thomas' English Muffins, Sara Lee and Entemann's.

Some of the other companies possibly interested in acquiring Hostess Brands are Little Debbie makers McKee Foods, ConAgra and Flowers Food. 

One of the reasons Hostess gave for the bankruptcy was a devastating strike which started on Nov. 9.

Members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International (BCTGM) Union, which represents 30 percent of Hostess workers, did not agree to an eight percent cut of wages. The union workers blamed the company's management for its downfall and not the strike. 

In September, the Teamsters Union agreed to the new contract that cut wages and benefits that the Bakery Union went on strike against. The Bakery Union would not agree to the deal, which meant an 8 percent salary cut in the first year of the five-year agreement. Salaries were then scheduled to bump up 3 percent in the next three years and 1 percent in the final year.

Around 18,500 Hostess employees will be out of a job after the liquidation, with the closing of 33 bakeries, 565 distribution centers and 570 outlet stores. The company has had financial trouble for the past few years with bankruptcies filed in 2004 and January of this year.

© 2014 Enstarz, All rights reserved. Do not reproduce without permission.

facebook tweet this pin it plus
Contribute to this Story send us a tip send us a tip send us a tip
Sign Up for Newsletters

Around The Web

  • SEARCH ENSTARS

Halloween

Last-Minute Halloween Costume Ideas You Should Try

If you’re one of those people who wait for the very last minute to get your Halloween costume, we’ve put together a list of simple ones you can put together fairly quickly.

Amazon

What To Expect From Black Friday And Cyber Monday Deals This Year

We haven't even celebrated Halloween yet or thought about what to serve for Thanksgiving dinner, but it looks as though everyone is already gearing up for what looks like a very exciting Black Friday this year.

STRACK FAMILY

Utah Family Found Dead Reportedly Poisoned, According To Police

A Utah family of five who was found dead last month by family members were reportedly poisoned, according to new police findings.

Pakistan

Watch Pakistan vs Australia Cricket Live Stream

The Australia cricket team is set to face off against Pakistan's cricket team in the 1st Test at 6 a.m. GMT today.

Halloween

10 Halloween Ideas Based On Pop Culture, Photos

Halloween is just a week away and we are sure many of you are scrambling for last-minute ideas. We’ve compiled a list of costumes with a pop culture theme.

Fireworks Accident

26 Die as Fireworks Truck Explodes in China Atop an Elevated Highway (Photo)

Twenty-six people reportedly lost their lives while several others were injured after a truck exploded and blew up part of an elevated highway in China on Friday.

Afghanistan

Pakistan vs Afghanistan LIVE STREAMING Free: Watch '2014 Asia Cup' Cricket Online @ 2PM BST

The Pakistan cricket team will be playing against Afghanistan's in the latest game of the 2014 Asia Cup series at 2 p.m. BST.

Rudy Eugene / Video Still

Miami Zombie Attack Rudy Eugene Had No Flesh in Stomach; Autopsy Report

Rudy Eugene, dubbed the "Miami Zombie" after tearing off chunks of a homeless man's face, had no human flesh in his stomach, according to recent reports. An autopsy of the vicious assailant showed no signs that Eugene had actually ingested parts of Ronald Poppo's face. Instead, he was found to have undigested pills in his stomach which have yet to be identified.

Mayan Pyramid

Mayan Calendar 2012 End Of The World Date: Historical Calculations Off?

Just before dawn on Friday, most spiritualists prepared to bring in a new age while some others entertained the thought of the world ceasing to exist as one knows it. Nonetheless, planet Earth is still here and the 5,125-year Mayan calendar cycle has come to an end.

King Tut

A Virtual Autopsy Shows King Tut's Shocking Figure

New footage of King Tutankhamun’s appearance has been unveiled and it digs deeper into the life of the Egyptian pharaoh of the 18th dynasty.

Craig Spencer

Get All The Details On Craig Spencer's Ebola & His Fiancee

Fear grew in New York City after Dr. Craig Spencer was rushed to Bellevue hospital on Thursday for a fever and later diagnosed with Ebola. His fiancée, Morgan Dixon, was also quickly put into quarantine.

Halloween

Last-Minute Halloween Costume Ideas You Should Try

If you’re one of those people who wait for the very last minute to get your Halloween costume, we’ve put together a list of simple ones you can put together fairly quickly.

Cristiano Ronaldo

Barcelona vs Real Madrid Live Stream: Watch Online El Clasico in Spanish La Liga

Barcelona vs Real Madrid is the huge soccer game from Spain taking place on Sunday. The match kicks off at 1.50 p.m. ET and can be watched online through live stream (link provided below).

Latest News

STRACK FAMILY

Utah Family Found Dead Reportedly Poisoned, According To Police

A Utah family of five who was found dead last month by family members were reportedly poisoned, according to new police findings.

Halloween

Last-Minute Halloween Costume Ideas You Should Try

If you’re one of those people who wait for the very last minute to get your Halloween costume, we’ve put together a list of simple ones you can put together fairly quickly.

Amazon

What To Expect From Black Friday And Cyber Monday Deals This Year

We haven't even celebrated Halloween yet or thought about what to serve for Thanksgiving dinner, but it looks as though everyone is already gearing up for what looks like a very exciting Black Friday this year.

Costco

List Of Stores Set To Remain Closed On Thanksgiving

For the meticulous planners, who want to strategically zone in on all the best deals, it is important to know when which stores will be open, and unfortunately a whole bunch have chosen to remain shut on Thanksgiving and will open only on Black Friday.

Craig Spencer

Craig Spencer's Fiancee Released From Hospital After Ebola Hits NYC

Morgan Dixon, the fiancee of Dr. Craig Spencer who was tested positive for Ebola virus, was reportedly released from the hospital on Saturday afternoon.

JK Rowling

'Harry Potter' Pottermore Dives Into Umbridge's History; New J.K. Rowling Story Promised For Halloween

J.K. Rowling will deliver a new 'Harry Potter' adventure in time for Halloween mayhem.

Craig Spencer

Get All The Details On Craig Spencer's Ebola & His Fiancee

Fear grew in New York City after Dr. Craig Spencer was rushed to Bellevue hospital on Thursday for a fever and later diagnosed with Ebola. His fiancée, Morgan Dixon, was also quickly put into quarantine.

Halloween

10 Halloween Ideas Based On Pop Culture, Photos

Halloween is just a week away and we are sure many of you are scrambling for last-minute ideas. We’ve compiled a list of costumes with a pop culture theme.

Craig Spencer

Craig Spencer's Fiancee Morgan Dixon Held Into Quarantine After Her Boyfriend Becomes First New York City Resident With Ebola

Morgan Dixon, the girlfriend of Dr. Craig Spencer who's been tested positive for Ebola virus, is currently being held into quarantine.

Craig Spencer

Ebola Virus Hits New York City After Doctor Gets Diagnosed With Deadly Disease

The Ebola virus has reportedly hit New York City after a doctor has been tested positive amid helping Guinea victims who had the virus.

Featured Videos

From Our Partners

Call of Duty: Advanced Warfare

Call Of Duty: Advanced Warfare Leak Reveals Return Of Zombie Gameplay Mode

In a leak perfectly timed with the Halloween season, Call of Duty: Advanced Warfare was revealed to be bringing back the popular zombie gameplay to the franchise.

Aubrey Cleland

Celebrity Leaked Photos 2014: 'American Idol' Contestant Aubrey Cleland Added To Victim List [VIDEO]

Aubrey Cleland is the latest celebrity to fall victim to the ongoing photo leaks.

Lisa Rinna

Lisa Rinna 'Real Housewives Of Beverly Hills:' Soap Star 'Made Threats' Against Kim Richards [VIDEO]

Lisa Rinna and Kim Richards engaged in a bitter fight during filming on the latest installment of The Real Housewives of Beverly Hills.

Kobe Bryant

Los Angeles Lakers Rumors: 'Frustrated' Kobe Bryant Trying To Stay Patient Amid Lakers 0-2 Start [VIDEO]

Los Angeles Lakers superstar Kobe Bryant admitted there is some frustration in the midst of the team's 0-2 start, but he also said he is trying to be patient in the wake of early struggles.

Minecraft PS Vita Edition

Minecraft PS Vita Edition 1.02 Patch Notes: New Bug Fix Stops Game From Crashing, Corrupting Save Files

A new patch for Minecraft: PS Vita Edition is rolling out across Europe and North America today, console developer 4J Studios announced, that will fix a handful of game-crashing and save-corrupting bugs.

Persona Q: Shadow of the Labyrinth

Persona Q Shadow Of The Labyrinth News: Four New Trailers Highlight NPCs Theodore, Marie And Elizabeth, Details About The Fusion System [VIDEO]

ATLUS has released three new NPC videos and a video highlighting the Fusion system, which allows you to combine Personas in the upcoming 3DS game.

Stassi Schroeder

Stassi Schroeder Pregnant: 'Vanderpump Rules' Star Accused On Having Baby Bump, Rep Responds [VIDEO]

Stassi Schroeder is speaking out, via her rep, about recent pregnancy rumors.

Paige WWE NXT and Divas Championships

WWE Divas [PHOTOS]: A Look At Halloween Costumes From The Women Of The WWE [VIDEO]

It's the spookiest day of the year, but there is nothing scary about the sultry WWE Divas and the company has taken full advantage of this by displaying its Divas in their Halloween costumes.

Vince McMahon

WWE Network Free Account: WWE Touts Free November For New Subscribers, Including Survivor Series [VIDEO]

In an effort to ramp up its lackluster subscribers count, the WWE is offering free subscriptions for the month of November to any new user that signs up for the online wrestling platform.

Real Time Analytics