RIP Hostess Brands: 1930-2012

[AKA]

http://hostessbrands.com/Closing.aspx

Hostess Brands is Closed.

We are sorry to announce that Hostess Brands, Inc. has been forced by a Bakers Union strike to shut down all operations and sell all company assets. For more information, go to hostessbrands.info. Thank you for all of your loyalty and support over the years.

Hostess Brands to Wind Down Company
After BCTGM Union Strike Cripples Operations

Friday, November 16, 2012 at 7:00AM

Irving, TX – November 16, 2012 – Hostess Brands Inc. today announced that it is winding down operations and has filed a motion with the U.S. Bankruptcy Court seeking permission to close its business and sell its assets, including its iconic brands and facilities. Bakery operations have been suspended at all plants. Delivery of products will continue and Hostess Brands retail stores will remain open for several days in order to sell already-baked products.

The Board of Directors authorized the wind down of Hostess Brands to preserve and maximize the value of the estate after one of the Company’s largest unions, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), initiated a nationwide strike that crippled the Company’s ability to produce and deliver products at multiple facilities.

On Nov. 12, Hostess Brands permanently closed three plants as a result of the work stoppage. On Nov. 14, the Company announced it would be forced to liquidate if sufficient employees did not return to work to restore normal operations by 5 p.m., EST p.m., Nov. 15. The Company determined on the night of Nov. 15 that an insufficient number of employees had returned to work to enable the restoration of normal operations.

The BCTGM in September rejected a last, best and final offer from Hostess Brands designed to lower costs so that the Company could attract new financing and emerge from Chapter 11. Hostess Brands then received Court authority on Oct. 3 to unilaterally impose changes to the BCTGM’s collective bargaining agreements.

Hostess Brands is unprofitable under its current cost structure, much of which is determined by union wages and pension costs. The offer to the BCTGM included wage, benefit and work rule concessions but also gave Hostess Brands’ 12 unions a 25 percent ownership stake in the company, representation on its Board of Directors and $100 million in reorganized Hostess Brands’ debt.

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

In addition to dozens of baking and distribution facilities around the country, Hostess Brands will sell its popular brands, including Hostess®, Drakes® and Dolly Madison®, which make iconic cake products such as Twinkies®, CupCakes, Ding Dongs®, Ho Ho’s®, Sno Balls® and Donettes®. Bread brands to be sold include Wonder®, Nature’s Pride ®, Merita®, Home Pride®, Butternut®, and Beefsteak®, among others.

The wind down means the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores throughout the United States.

The Company said its debtor-in-possession lenders have agreed to allow the Company to continue to have access to the $75 million financing facility put in place at the start of the bankruptcy cases to fund the sale and wind down process, subject to U.S. Bankruptcy Court approval.

The Company’s motion asks the Court for authority to continue to pay employees whose services are required during the wind-down period.

For employees whose jobs will be eliminated, additional information can be found at www.hostessbrands.info. The website also contains information for customers and vendors. Most employees who lose their jobs should be eligible for government-provided unemployment benefits.

[AKA]

http://hostessbrands.info/customer-letter

Letter to Hostess Brands Customers

Dear Loyal Customer,

I must regretfully inform you that Hostess Brands has shut down all operations and will be pursuing the sale process of all of our brands and Company assets. Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands.

For many months now, the Company has been working with our unions, lenders and other stakeholders to reach a consensual resolution to legacy costs and labor contracts. Despite everyone’s considerable efforts, when we began implementing the Company’s last, best and final offer, the Bakers Union chose to stage a crippling strike. This affected our ability to continue to make products and service our customers’ needs and pushed Hostess Brands into a Wind Down scenario. As a result, the Company was forced to proceed with an orderly wind down and sale of our operations and assets. We deeply regret taking this action. But we simply cannot continue to operate without the ability to produce or deliver our products.

Hostess Brands will sell its popular cake snack brands, including Twinkies®, CupCakes®, Ding Dongs®, Ho Ho’s®, Sno Balls®, Donettes®, Drake's® cakes and Dolly Madison®. Bread brands to be sold include Wonder®, Nature’s Pride®, Merita®, Home Pride®, Butternut®, and Millbrook®, among others.

This Wind Down announcement brings our current relationship to an end and I want to take this time to thank you for your continued support and loyalty throughout the past several years.

It has been a great pleasure working with you and I wish you all the best in the future. Attached is an information sheet to help address your concerns.

Sincerely,
Rich Seban
Executive Vice President & Chief Marketing Officer
Hostess Brands, Inc.

[JamesG]

It's sad, but could another company buy them out and their products will then basically remain the same?

[AKA]

Originally Posted by JamesG

It's sad, but could another company buy them out and their products will then basically remain the same?

Yeah, that's what Hostess is aiming for, and exactly what I predicted would happen should the company fold back in January.

[gilligan fanatic]

I hope it isn't to long that the products are sold again (under a new company) and all the workers get there jobs back.

[phoebe7165]

Hostess closing down after all these years??? So Dec.21st really isn't the end of the world after all, it's TODAY!!!!!

[Mr. Television]

No Twinkies.

[gilligan fanatic]

Originally Posted by phoebe7165

Hostess closing down after all these years??? So Dec.21st really isn't the end of the world after all, it's TODAY!!!!!

That's funny!

[ABlairican Pie]

My brother works for Hostess. I'm wondering how he's going to manage.

[JamesG]

Twinkie Shortage? Shoppers Stock Up As News of Hostess Bankruptcy Spreads on Twitter
11/16/2012


Hostess Brands Inc., the makers of Twinkies, Ding Dongs and Wonder Bread, says it's going out of business, leading some Americans to stock up on the sweet processed treats in case they disappear from shelves.

The stunning announcement is the result of a bankruptcy and labor dispute, the Associated Press reports. More than 18,000 jobs would be cut.



According to WCPO, some grocery stores are now getting calls from buyers asking if they still have Twinkies on their shelves, as some consumers who grew up with the brand prepare to stock up on treats including Ho Ho's and the Hostess Fruit Pie, among many others.

The Texas-based company wants to hold a liquidation hearing on Monday, The Star-Ledger reports. However, already baked products will be delivered to stores, so there's still a few more days to hoard the cakes.



As Twitter and Facebook mourned the possible passing of the classic treats, 7-Eleven stores in Chicago observed shoppers buying the cakes in the early morning hours.

A worker at the 7-Eleven on Halsted in University Village said she only had one person buy a Twinkie this morning -- because the store is already sold out, 89 WLS reports.

http://www.huffingtonpost.com/2012/1...n_2144606.html

[Zoneboy]

I remember back in the 70's when my parents would buy Hostess snack cakes. My brothers and I would fight over who got the baseball cards on the back of the box. Of course being ignorant little kids we had no idea that the cards would be worth more if not cut from the boxes.
Best thing was that the teams logos weren't air-brushed out like they are for most promotional sportscards today.

[janet42]

I'm sadden by the news I love Hostess Ding-dongs and apple fruit pies.

[JamesG]

Little Debbie has something called Cloud Cakes.

They taste exactly like Twinkies.

[Janice]

^ I don't think they taste exactly like Twinkies. Close though. It's hard to imagine a world without Twinkies. I'll miss Funny Bones. I've been eating those forever.

.

[MrCleveland]

The Health-Food Nation is about to rise! (I don't mind eating healthy since I wanna lose a belly...we just shouldn't be forced to do so....)