Hostess is going out of business: Time to hoard your Twinkies
It seems like "Zombieland" might have gotten it right when the movie said that Twinkies would be hard to find in the future. The zombie apocalypse might not be on its way (or so we think), but Hostess Brand Inc. is closing its doors.
The 82-year-old company made the announcement that it's seeking to liquidate today (Nov. 16). This news comes after Hostess filed for Chapter 11 in January. The company has requested for bankruptcy-court authorization and plans to close Hostess and sell all assets. It was a national strike planned by Hostess's second-largest union that stopped work starting on Nov. 9 that ended up forcing the company to close its doors.
"We deeply regret the necessity of today's decision, but we don't have the financial resources to weather an extended nationwide strike," CEO Gregory Rayburn says in a statement released Friday. Hostess will "promptly" lay off the majority of its 18,500 employees and will focus on "selling its assets to the highest bidders."
The entire process of closing Hostess should take about a year, and the company is expected to sell its remaining inventory -- including Ding Dongs, Twinkies and Wonder Bread -- in bulk to discounter or "big-box" stores, like Costco. It's unclear whether Hostess's brands like Twinkies will be picked up by other food companies or whether they will go down with the ship as well.