Strike Out: Hostess Closing Up Shop; 18,000 Out Of Work
Hostess Bakery, the company that has given us Twinkies, Dolly Madison brand snacks and Ding Dongs for decades, are closing their doors. The company that began as Interstate Bakeries back in 1930 has been crippled by an employee strike and all plants have closed. The closing leaves 18,000 out of job. The company emerged from bankruptcy in 2009, moved to Irving, Texas, and was operating under a labor contract reached while in bankruptcy court.
The liberal media are quick to lay the blame on the two equity firms that helped bring the company out of bankruptcy, Silverpoint and Monarch. But the death blow really belongs to the Bakery Workers Union who refused to accept a deal that was already (barely) accepted by the Teamsters and agreed to by Hostess. Company management was pitted between a rock and hard place and had to throw down the gauntlet with striking employees: come back to work or we'll be forced to close. The workers did not and now, Hostess is shuttered, but the CEO, Gregory Rayburn, told CBS Radio News that he is looking for a buyer for the company. For now, it appears a Ding Dong Depression is setting in. Thanks again, unions!