Lighten up just catching your attention.
Oh the pain; all of my childhood favorites; doughy white Wonder bread, Twinkies, Ho Ho’s, Sno Balls all going the way of the buffalo.
Hostess Brands closing for good
By Chris Isidore and James O'Toole @CNNMoney November 16, 2012: 8:59 AM ET
NEW YORK (CNNMoney) -- Hostess Brands -- the maker of such iconic baked goods as Twinkies, 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.
The closing will result in Hostess' nearly 18,500 workers losing 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 around 5,000.
"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. That could mean for some of its most popular products, which could be scooped up at auction and attached to products from other companies.
A letter that Hostess sent to its network of stores that carry its product said it expects "there will be great interest in our brands." But it said it could not give a time frame for when the sales would take place and its products would be available again.
But even if those brands are bought and restarted, the Hostess workers will not get their jobs back.
"The industry has overcapacity. We're overcapacity. Our rivals are overcapacity," said Rayburn in an interview on CNBC. Asked if the shutdown decision could be reversed if the Bakers' union agreed to immediately return to work, he responded, "Too late."
While approval of the bankruptcy court is needed before the company can start selling its assets in liquidation, the company said production at all of its bakeries has ceased effective Friday, and that stores will no longer receive products from Hostess Brands. But products that are already in stores can be sold, and the outlet stores will remain open for several days to sell the products they already have.
Hostess had annual sales of about $2.5 billion. The company said there are had been 500 million Twinkies made annually.
Its bread brands, including Wonder Bread, Nature's Pride and Butternut, make the company the No. 2 bead baker in the country, according to Symphjony/IRI Group. Bimbo Bakeries, maker of Arnold and Stroehmann brands, is the No. 1 bread baker.