Hostess Brands shuts down three bakeries after strike

Justin Sullivan/Getty Images

IRVING, Texas Hostess Brands is permanently closing three bakeries following a nationwide strike by its bakers union.

The maker of Twinkies, Ding Dongs and Wonder Bread said Monday that the strike has prevented it from producing and delivering products, and it is closing bakeries in Seattle, St. Louis and Cincinnati. The facilities employ 627 workers.

Hostess, based in Irving, Texas, operates 36 bakeries nationwide and has about 18,300 employees. It warned earlier this month that the strike, by about 30 percent of its workforce, could lead to bakery closures.

"We deeply regret this decision, but we have repeatedly explained that we will close facilities that are no longer able to produce and deliver products because of a work stoppage - and that we will close the entire company if widespread strikes cripple our business," Hostess Brands CEO Gregory F. Rayburn said.

Hostess said customers will not be affected by the closures.

A representative for the union could not be reached immediately for comment Monday.

Thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike Nov. 9 to protest cuts to wages and benefits under a new contract offer, which the union rejected in September. Union officials say the company stopped contributing to workers' pensions last year.

Hostess has argued that workers must make concessions as it tries to improve its financial position. The privately-held food maker filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade. Hostess cited increasing pension and medical costs for employees as one of the drivers behind its latest filing.

The company, founded in 1930, is fighting battles beyond labor costs, however. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating.

[SteveM12a]

Well NOW they have NO jobs, way to go unions you have once again cut you nose off your face.

If I was Hostess I would close the whole kitten kabootal and be done with it. Unions are destroying America and one of their leaders has already admitted that a union is to socialize America, well not on Hostesses back.


Enjoy your unemployment unless yes maybe dick trumpka (or how ever you spell his name will get you a job.

[26yrbaker]

Your right Obama did not have anything to do with it but you need to get your facts stright. Do you work for Hostess my husband did and back in 2008 the bakers did take a cut in pay and plants still were closed including my husbands plant. The company wants you to believe that they had to close the plants due to the strike but it was already planned to close them before the strike. Do you want to know what the former CEO Brian Driscoll was paid 1.5 million and others had same over paid salaries. This is the second bankruptcy for the company I am sick of them blaming the unions when they are the ones that have missed managed the money. I wished my husband made 65,000-70,000 a year try 30,000-35,000.

[hindsightis2020]

Unions or Corporate Fascism.... I'll take unions every day of the week since I believe no CEO should make 200-350 times what the worker makes per year. See "Park Avenue: Money, Power, and the American Dream".

Alvarado Street Bakery in Peteluma CA. produces 40,000 loaves of bread per day. Each employee makes between $65,000 - $70,000 per year + benefits. Look it up people, see how an honest American company should be run!

[lizr2013]

First of all, this company had financial problems before Obama. Obama care will actually lower employer health costs and regulation to the health insurance industry. Which will help business grow. I love how quick people are to turn a problem political or blame on Obama.

The Union and non union employees of Hostess have all made several sacrifices so have other companies in this economy. Management has taken several pay cuts thru the bankruptcies. And No one has been receiving pensions. The Teamster Union agreed to the new contract and the Baker's union needs to do the same. This is hurting a lot of people that do not deserve it. Employees and Teamsters have made sacrifices, the baker's union seems to think they are 'exempt' from this struggling economy and company. A small pay cut to save thousands of jobs would be well worth it. What happened to supporting your brothers and sisters? Now we just throw them under the bus and look out for yourself.

The bakeries are closing because the company can't afford this overhead of non operating bakeries due to striking workers. Take the message bakers union and GO BACK TO WORK!

The pay cut they are asking the Baker union to take is still a liveable wage and less costly then thousands of workers being out of work and more than unemployment.


And yes, there has been several new products to meet the more health conscious consumers such as Nature pride bread, 100% whole wheat varieties.

[geaux607]

Way to go Hostess!!!!!!!! Stand up to the bully unions!!!!!!!

[26yrbaker]

Do you work for Hostess my husband did and back in 2008 the bakers did take a cut in pay and plants still were closed including my husbands plant. The company wants you to believe that they had to close the plants due to the strike but it was already planned to close them before the strike. Do you want to know what the former CEO Brian Driscoll was paid 1.5 million and others had same over paid salaries. This is the second bankruptcy for the company I am sick of them blaming the unions when they are the ones that have missed managed the money. I wished my husband made 65,000-70,000 a year try 30,000-35,000.

[2759Ridgefield]

That is exactly what it is. If theycan't operate within the law and pay their workers a living wage then t hey don't deserve to operate a business. No sympathy. There is no RIGHT to run a business, the company failed due to being unable to compete with their products (which have not changed in decades). This is a fault of management, who felt no pressure to compete as long as t hey could break the backs of their employees to keep the owners wealthy.

[TexasE]

the reason they cannot compete is money. a business is in business to make money-simple. the more you pay your employees the less profit you make. breaking the unions is one way to save a bundle of money. why do you think so many jobs are moving south? no unions. i have a business and pay my people fair wages and benefits. if i even hear talk of a union i will close operations and move to mexico where i can make 10 times what i make now. i prefer to keep things local, but i will not bow to my employees. i work hard for what i have and made it despite a poor upbringing. there is no entitlement, no right to have a business, you're right about that. there is a right to run your business the way you want within the law and i hope hostess does so. unions started as a good thing, anymore they are just a money maker. ask how much the union reps are taking in kickbacks. there is the real criminal here. coke hasn't changed in decades and is still successful, so not changing their product is not the answer. workers have a right to work anywhere, let them quit-no sympathy. im sure with a 9% unemployment rate, someone would be willing to work for less. We need to stand up and take back our country and stop catering to pansies who want everything and then some for minimal work.

[zebra8835]

Maybe it's just me but a lot of these treats that used to be quite tasty and tempting, now taste crappy. Years ago they used to use a creamy filling that was lucious and the cake portion tender, flavorful and moist. The chocolate on the outside tasted like chocolate. Many of these companies products use (cheaper) artificial ingredients that just don't taste good. The chocolate peels off like rubber, the cake stale and only a teaspoon of filling. As to the labor strife, a lot of these treats fit into blue collar lunch bags that are undoubtebly now being boycotted. I hope they come to terms soon and improve their sales and employee's lives.

[Nate650]

Bingo; these huge companies have no regard for human health and only care about cutting costs by using cheap junk ingredients. Clearly it has backfired.

[olyboy]

This is only the begining. As Obamacare and excessive regulatory costs are pushed on business and passed through to consumers, we will see our economy continue to shrink. All hail the great Obama!

[Iwish100]

Olyboy get your facts straight.... Obama has nothing to do with this, it's the unions who can't make concession. Tha bakers union to be precise. Wal-mart should help hostes to get rid of them.