January 26, 2015 | Updated at 03:02 PM EST 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.

© 2015 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

WWE

WWE 'Royal Rumble 2015' LIVE STREAM: Watch Brock Lesner Battle John Cena & Seth Rollins Online

Find out who will enter the WWE World Heavyweight Championship match at WrestleMania

Miss Universe

Watch Miss Universe 2015 In Live Stream

It's almost time for Miss Universe 2015 and there is a link where viewers can watch the show in a live stream.

Robert Scott Wilson

Which Characters Could Be Cut From 'Days of Our Lives?' FInd Out Here

There's a chance that some of the faces fans have gotten used to seeing Salem could soon disappear on Days of Our Lives.

Jessa Duggar

Is Jessa Duggar Pregnant?

There's a good chance that Jessa Duggar might already be pregnant and that she's just waiting for the right moment to make an announcement.

Sarah Paulson

'American Horror Story' Star Sarah Paulson Talks Rumored Space Concept For Season 5

While the vague concept of "space" has been speculated to be the theme of season 5 of FX's 'American Horror Story, 'one of the show's stars is pretty confident that this is not true.

The cast of 'Red Band Society' a new Fall 2014 Drama Series on FOX

Could Fans Still Potentially Save 'Red Band Society' Despite Its Being Cancelled?

Fans were devastated to learn that after the final three episodes of Red Band Society air the series would be over, but that hasn't kept them from still trying to see if there is any way possible to get the show revived and back on the air.

Amina Buddafly

Amina On Peter Gunz's Romantic Vacation With Tara Wallace, 'I've Moved On'

Fans have been waiting to see Amina's reaction to her husband, Peter Gunz, secretly going to a romantic family vacation with his ex-girlfriend, Tara Wallace on VH1's Love & Hip Hop New York.

Beau Kayzer

'Young And The Restless' Actor Beau Kazer Passes Away At 63

Young and the Restless star Beau Kazer has passed away at the age of 63.

Longmire

'Longmire' Star Shares Photo From The Set

Production begins for the fourth season of 'Longmire' in March, and to get everyone excited Katee Sackhoff has decided to share a photo from the set.

Miss Universe

Watch Miss Universe 2015 In Live Stream

It's almost time for Miss Universe 2015 and there is a link where viewers can watch the show in a live stream.

Bow Wow, Erica Mena

Rich Dollaz Slams 'Conniving' Erica Mena After He Gives Her Relationship Advice, 'You're A Liar'

Actor Bow Wow and Erica Mena are going strong but fans might have been shocked when she confided in her ex-boyfriend Rich Dollaz for advice on how to deal with her then girlfriend Cyn Santana on Love & Hip Hop New York.

Kim Matula

Will The New Hope Logan Soon be Announced For 'The Bold and the Beautiful?'

Her character has been off the canvas for just over a month now, and fans of The Bold and the Beautiful are dying to know who will be replacing Kim Matula as Hope Logan.

The Dovekeepers

See 10 Photos Making Us Really Excited For 'The Dovekeepers'

Executive producer Roma Downey steadily posted photos from the set on Instagram getting fans excited for the premiere.

Amish Mafia

'Amish Mafia' Officially Returning For Final Season In February

It's official-the upcoming season of Amish Mafia will be the show's last.

Latest News

Tyra Banks

'ANTM' Host Teases 'Life-Size' Sequel

The 'Life-Size' sequel seems to be underway.

Castle

'Castle': Plot For 2-Part Episode Revealed As Rick Is Asked To Consult On Case With Dr. Kelly Nieman

ABC has released the plot synopsis for the upcoming first episode of a two-part arc of ABC's 'Castle,' which will see the return of 3XK (Michael Mosley).

Kerry Washington

Kerry Washington Attends The Daily Front Row's Fashion Awards

'Scandal' actress Kerry Washington attended The Daily Front Row's Fashion Awards in Los Angeles last week and she had a few things to say about her life as a new mom.

Taylor 'Lil Bit' Wright

Check Out Former 'Party Down South' Star Taylor Lil' Bit Wright's New Clothing Line!!

She may not be coming back with Mattie, Daddy, Tiffany, Lauren. Walt, Murray and Lyle when season 3 of Party Down South premieres on February, but former cast member Taylor 'Lil Bit' Wright is still giving her fans a special treat early in 2015-a brand new clothing line that she's designed!

Ariana Madix and Tom Sandoval

Ariana Madix Says Kristen Doute Is 'Unintelligent' & 'Obnoxious'

Tom Sandoval and Ariana Madix spoke of Kristen Doute in a new interview.

Pearl 'RuPaul'

'RuPaul' Contestant Pearl Reveals Who Her Eerie Inspirations Are

As fans anticipate what can be expected in the new season of 'RuPaul's Drag Race,' one of the queens revealed who her inspirations are, which might be a surprise for some.

Jennifer Aniston

Jennifer Aniston Shows Off Her Cleavage Once Again On The Red Carpet

Jennifer Aniston has one of the most sought-after curves in Hollywood, but according to the actress, she hasn't worked out in a very long time.

Jamie Dornan

John Oliver Not A Fan Of Jamie Dornan As Christian Grey?

Heartthrob Jamie Dornan may have a few haters who don't think he quite fits the part for the role of millionaire Christian Grey.

Tom Sandoval

Tom Sandoval Weighs In On His 'Vanderpump Rules' Cheating Scandal

Tom Sandoval is still defending himself against allegations of an affair in Miami.

Actress Kristen Stewart arrives at the 2013 Kids Choice Awards in Los Angeles, California March 23, 2013.

Did Kristen Stewart Tell Robert Pattinson To Break Up With FKA Twigs?

The rumors on Kristen Stewart and Robert Pattinson are continuing to splurge with one report that's just been cleared up.

Featured Videos

From Our Partners

Justice League Dark

'Justice League Dark' Movie Full Hero Lineup Revealed? Guillermo del Toro Film May See Light [RUMOR]

With Justice League movie rumors floating around in abundance, it might be easy to overlook some older gossip surrounding the DC Universe. New information has surfaced that points to Justice League Dark being a go.

Aaron Hernandez

Aaron Hernandez Murder Case Update: Historic Blizzard Delays Start Of Odin Lloyd Trial [VIDEO]

Aaron Hernandez jury is set for Odin Lloyd murder trial, but massive snowstorm delays opening statements.

Aaron Rodgers

Aaron Rodgers, Olivia Munn: Green Bay Packers Celeb Couple Appearing In Rom-Com Together?

Aaron Rodgers may be following girlfriend Olivia Munn into the movie business if a young producer gets his way.

Dudley Boys

Bubba Ray Dudley WWE Return: Backstage News On Dudley's Status, Randy Orton's Comeback and More [VIDEO]

Bubba Ray Dudley made his return to the WWE at the Royal Rumble while top Superstar Randy Orton wasn't utilized despite being at the Wells Fargo Center in Philadelphia. The WWE may work out a long-term deal with Dudley.

Candy Crush Soda Saga

Candy Crush Soda Saga Update 1.34.30 Adds New 15 Level Palm Sugar Oasis For iOS And Android

Sink your teeth into the latest update for iOS and Android hit Candy Crush Soda Saga, and be sure to wash them afterwards. There's a whole lot of tooth decay coming your way if you don't.

Clash Of Clans

Clash Of Clans Barbarian King Strategy Video: The Sprinting King Assault Is Absurd, But It Works [VIDEO]

If you love running, you'll love the Sprinting King strategy, a cool looking and still effective new type of attack for closing out that second star in Clash Of Clans.

Game of Thrones

Game of Thrones Season Five Spoilers: Leaked Photos Show Tyrion And Daenerys Together During Dragon Attack?

New set pictures have been leaked from Game of Thrones revealing some massive spoilers for the upcoming season, as well as one of the key fears from readers and fans of the show alike, that the HBO show would outpace the books. Brace yourself, spoilers are coming.

Homeworld

Homeworld Remastered Collection Video: See The First Glimpse Of Gameplay Footage From The Upgraded Classic Strategy Titles

As you may have heard, Gearbox is recreating real-time space strategy classic Homeworld. The first footage of Homeworld Remastered Collection--which includes Homeworld 1 and 2--has been released ahead of its launch next month, and the game is looking great.

Lance Armstrong,

Lance Armstrong On Steroids: Doping Was 'Completely Pervasive,' Admits He Would Have Still Used PEDS

Armstrong won seven Tour de France titles between 1999 & 2005, but was stripped of each of them following doping revelations.

Real Time Analytics