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This morning, we have received tragic news that Hostess Brands will shut down, in retaliation for the striking workers standing up for their rights.

IRVING, Texas (AP) — Hostess Brands says it is going out of business, closing plants that make Twinkies and Wonder Bread and laying off all of its 18,500 workers.

The Irving, Texas, company says a nationwide worker strike crippled its ability to make and deliver its products at several locations.

Hostess had warned employees that it would file a motion in U.S. Bankruptcy Court to unwind its business and sell assets if plant operations didn't return to normal levels by Thursday evening.

Laura Clawson at Daily Kos on Hostess lying to its workers regarding the strike and closures:
Workers at more than 20 Hostess plants have gone on strike after overwhelmingly rejecting the company's demands for major wage and benefits concessions. In response, Hostess is claiming that it may have to close plants because of the strike. The Bakery, Confectionery, Tobacco Workers, and Grain Millers union has a convincing argument That's a lie, though.
My tweet on this sums it up best:


Hostess Brands Inc, the bankrupt maker of Twinkies and Wonder Bread, said it had sought court permission to go out of business after failing to get wage and benefit cuts from thousands of its striking bakery workers.

Hostess, which has about $2.5 billion in sales from a long list of iconic consumer brands of snack cakes and breads, said it had suspended operations at all of its 33 plants around the United States as it moves to start liquidating assets.

Union President Frank Hurt said the company's failure was not the fault of the union but the "result of nearly a decade of financial and operational mismanagement" and that management was trying to make union workers the scapegoats for a plan by Wall Street investors to sell Hostess.

Hostess said its debtor-in-possession lenders had agreed to allow it to retain access to $75 million to fund the wind-down process.

The company has canceled all orders with its suppliers and said any product in transit would be returned to the shipper.

Of course, right-wing loons will blame this on the unions.


Originally posted to JGibson on Fri Nov 16, 2012 at 05:13 AM PST.

Also republished by In Support of Labor and Unions.

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