Hostess announced Friday plans to go out of business after over 70 years of service. The company will lay off over 18,500 workers and sell all of their food brands to different companies.
The company stated that they have been hurt lately due to the nationwide workers strike making it harder to produce and deliver products like Twinkies, Wonder Bread, and Ding Dongs according to the Associated Press.
The Texas company has already suspended bakery operations at all factories and stated stores will stay open to sell the remaining products that have already been baked.
Hostess had warned employees that they may file for bankruptcy if plant operations didn't continue by Thursday according to The Washington Post. Thousands of employees went on strike just last week after the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union rejected a September contract offer to cut wages and benefits. The union held their ground despite the company's warning and now they won't be receiving any money period.
Click here to see the entire press release issued by the company.
"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," CEO Gregory F. Rayburn said in the letter to employees posted on the company website.
Three plants had closed earlier this week due to the fact they couldn't produce products without workers. The company said that production overall had been "seriously affected" by the strike and the union really didn't give them another choice according to the Associated Press.
Hostess has also been in hot water thanks to the nation making more of a point to help people eat healthier and being more conscious about what they put in their bodies. They had already reached a contract with the largest union earlier this week, the International Brotherhood of Teamsters, but they weren't able to get the workers union to comprise.
The union representative has yet to comment to the Associated Press about the company's announcement.
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