Hostess Closure Affects Employees at 33 Factories
The popular snack cake brand Hostess is going out of business, as operations at 33 factories were suspended on Friday.
Hostess products include Twinkies, cream-filled chocolate cupcakes, Ding Dongs, Ho Hos , and Wonder Bread. According to a report by the associated press, approximately 18,500 employees at 33 Hostess factories were sent home and operations were suspended Friday.
Among the operations affected by the closure is a Wonder Bread plant north of Denver near I-25. According to a local Denver newspaper, 160 people work there. The associated press goes on to say that the plant is well known among travelers of the area because of the smell of baking bread.
The Irving, Texas based Hostess 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.
The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.
Roughly 500 Hostess bakery outlet stores will stay open for several days to sell remaining products.