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Maker of Twinkies closing, sacks Ga. workforce

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Hostess GeorgiaHostess Brands announced Friday it will shutter and liquidate its entire operation after failing to resolve a dispute with one of the companies largest labor unions, resulting in the elimination of 586 jobs here in Georgia.

The bakery giant filed a motion with U.S. Bankruptcy Court this morning seeking permission to fold its operation nationwide, citing a labor strike that had crippled its manufacturing capacity.

The move means the end of the company’s iconic confections, including Twinkies and Ding Dongs. For now, at least: the company is looking to unload all its brands to former competitors.

But the decision to close extends beyond grocery shelves.

A Hostess spokesman said in an email to Tipsheet the company had 586 employees working in 16 facilities, all retail outlets or distribution centers, spread across the state. Once the already-baked goods have been sold, all of those jobs will dry up.

In a prepared statement, the company said a nationwide strike by one of its largest unions, the AFL-CIO-affiliated Bakery, Confectionery, Tobacco Workers and Grain Millers International, has forced the closure.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” Hostess CEO Gregory Rayburn said. “Hostess Brands will move to promptly lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidder.”

- James Richardson

1 Comment.

  1. Watcher...

    Twinkles will soon be available from non-Union facilities.

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