February 12, 2016 | Updated at 03:18 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.

© 2016 Enstarz, All rights reserved. Do not reproduce without permission.

  • SEARCH ENSTARS

Latest News

The Amazing Race

How To Live Stream 'The Amazing Race' Premiere If You're Not Near a TV

Here's how to view the first episode of 'TAR' online.

Betty White

Watch Betty White Share Her Movie Review On 'Deadpool'

Does the beloved 'Golden Girl' think highly of the R-rated superhero comedy?

Lisa Vanderpump

'RHOBH' Lisa Vanderpump On Yolanda's False Claims, Erika's Exaggeration

Find out what Lisa Vanderpump had to say after being accused of suggesting Yolanda Foster's children didn't have Lyme disease.

Cara Delevingne

Is Cara Delevingne Hinting That She & St. Vincent Broke Up?

The model has reportedly been less than enthusiastic about being photographed in public and has been posting cryptic messages on her social mediae

Blue Valentine

In Honor Of Valentine's Day, 5 Best Films To Stream Now That Prove Love Sucks

Here are the best movies on Netflix, Amazon, Crackle and iTunes that show why love is so overrated.

President's Day Sales

Where To Find The Best Shopping Deals This President's Day Weekend

Stores are rolling out big deals this weekend.

Johnny Manziel

Johnny Manziel's Teammate Confirms His Release From The Cleveland Browns? 'It's A Sad End'

Johnny Manziel's run with the Cleveland Browns will reportedly come to a 'sad end' in less than one month.

Kate Hudson

Kate Hudson & Nick Jonas Claim They Aren't Dating, But Photos Tell A Different Story

Kate Hudson and Nick Jonas continue to add to speculation of a romance.

Gabourey Sidibe

Should Gabourey Sidibe Come Back To 'American Horror Story'?

The actress is very busy with her role on 'Empire' but should she return to the horror anthology series?

Real Time Analytics