Hostess snack cakes and Wonder bread have been long standing staples in kitchens across the country. This month, however, marks the end of the Hostess brand as we know it. Last week, Hostess was given approval by U.S.. Bankruptcy courts to shut down operations.
It's a sad time for Hostess snack cake junkies like myself. Last year, I posted a blog about the financial problems facing the Hostess company. At the time, they were dealing with increased production costs and lower product demand. In response to the problem, the company started bankruptcy proceedings and worked hard to restructure their company in order to stay profitable.
So what happened?
According to the Hostess website, the company had been working with lenders and union representatives to negotiate terms that would allow it to repay their debt and lower production costs. Although the lenders did all they could and Hostess was able to come to an agreement with their largest union, the International Brotherhood of Teamsters, who staff their shipping warehouses and deliver fresh bakery products across the country, they weren't able to survive the Bakery, Confectionery, Tobacco and Grain Millers Union (BCTGM) strike that began on November 9th.
As a result, the company began liquidating their assets on November 21st and more that 15,000 employees were terminated immediately, leaving only 3,200 employees on the payroll to deal with the closing process. By March, that number is expected to go down to only 200.
The Hostess Company is a privately owned business that has been selling baked goods for over 84 years. Their most recognizable products include Wonder Bread, Twinkies, Ding Dongs and (my favorite) Sno-Balls. I think that kitchen cabinets everywhere will look a whole lot different without these products in them.
Loyal Hostess customers and fans have been rushing to grocery stores in attempts to prepare for what could be a Twinkie apocalypse. It's gotten so bad that people have been selling boxes on Ebay for up to $20,000.
Although I feel their pain, I doubt that this is the last we will see of Hostess's products. The brand will most likely be sold to another company and will reappear within a year or two. Of course, to die-hard Hostess lovers, they probably won't taste quite the same.
If you're worried about the upcoming Twinkie shortage, here's a guide to stockpiling Twinkies.
Image Source: Hostess
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