Hostess Brands — the maker of such iconic baked goods as Twinkies, Drake’s Devil Dogs and Wonder Bread — announced Friday that it is asking a federal bankruptcy court for permission to close its operations, blaming a strike by bakers protesting a new contract imposed on them.
Why did Hostess shut down?
Narrator: By January 2012, with nearly a billion dollars in debt, Hostess Brands filed for Chapter 11 bankruptcy again. Broadcaster: The company that makes Twinkies, Wonder Bread, and Ding Dongs announced this morning that it is going out of business.
Are Hostess employees unionized?
Most union workers are public sector employees, and only 7 percent are private sector workers—like those from Hostess—belonging to unions, according to the BLS.
How long was Hostess closed?
Hostess filed for Chapter 11 in January 2012. In November 2012, the company announced it would be shutting its doors for good. By that time, it had lost about $1.1 billion, largely due to bankruptcy filings.
Is Hostess still around?
It is headquartered in Lenexa, Kansas, and was a venture originally started by Apollo Global Management and C. Dean Metropoulos and Company. Currently, the main operating subsidiaries are Hostess Brands, LLC and Voortman Cookies Limited.
Is Hostess back in business?
In 2016, Hostess again went public and posted sales of $908m and a $78m profit in 2019. Metropoulos’ merchant banking and management company has also bought, rebuilt and resold Pinnacle Foods, Aurora Foods, Stella Foods, The Morningstar Group, International Home Foods and Ghirardelli Chocolates, among others.
Who saved Hostess?
Dean Metropoulos & Co. partnered with Apollo Global Management to save Hostess from bankruptcy. He then served as Hostess Brand’s president and CEO until 2018. Hostess’ predecessor – Interstate Bakeries – was once a $3bn company but carried heavy debt and filed for bankruptcy twice, in 2004 and 2012.
What brands does Hostess own?
Some of the iconic brands that Hostess Brands produces are Hostess® Twinkies®, CupCakes, Donettes®, Ding Dongs®, Zingers®, Danishes, Honey Buns, and Coffee Cakes as well as our delicious Voortman® cookies and wafers that also come in sugar free offerings.
Did Hostess CupCakes go out of business?
In 2013, C. Dean Metropoulos & Co. partnered with Apollo Global Management to save Hostess from bankruptcy. The company was liquidated the second time, with various assets and brands going at auction to the new Hostess, under Metropoulos, as well as to Flowers Foods, United States Bakery, McKee Foods and Grupo Bimbo.
What happened to the hostess Union?
In September, membership of one of its major unions, the International Brotherhood of Teamsters, voted narrowly to accept a new contract with reduced wages and benefits. The Bakers’ union rejected the deal, however, prompting Hostess management to secure permission from a bankruptcy court to force a new concession contract on workers.
How many Hostess employees have been laid off?
Hostess’ nearly 18,500 workers will lose their jobs as the company shuts 33 bakeries and 565 distribution centers nationwide, as well as 570 outlet stores. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union represents about 5,000 Hostess employees.
Can hostess weather an extended nationwide strike?
“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” said CEO Gregory Rayburn in a statement. Hostess will move to sell its assets to the highest bidder.
Did teamster protect all jobs at hostess?
“Teamster Hostess members, based on the facts and advice from respected restructuring advisors, understood what was at stake and voted to protect all jobs at Hostess.” The new contract cut salaries across the company by 8% in the first year of the five-year agreement.
