Hostess Bakery Goes Out Of Business [POLL/VIDEO]
Hostess Bakery, the maker of Twinkies, Zingers, Donettes and Ho Ho's, embroiled in a labor dispute, says it is going out of business.
18,500 workers across the country will be put out of work as 33 bakeries and 565 distribution center if a federal bankruptcy judge approves the company's request to close its operations according to CNN.
"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.
Labor problems dragged down the company in recent months. The International Brotherhood of Teamsters accepted a new contract that cut benefits and wages but the bakers' union turned the deal down.
The Irving, Texas, company says a nationwide worker strike crippled its ability to make and deliver its products at several locations.CEO Gregory Rayburn told Fox Business many workers had already crossed picket lines this week to go back to work despite warnings by union leadership that they'd be fined. Three plants had been closed this week.
The company's portfolio of assets, including its snacks will likely be put up for auction meaning that its Cup Cakes, Zingers and Fruit Pies could live on with another company. Hostess' other products include Drakes products (Ring Dings, Coffee Cakes, Devil Dog & Funny Bone), Wonder Bread, Beefsteak bread, Merita, Nature's Pride and Dolly Madison.
The Associated Press contributed to this story.