Categories
News

It’s Hard Out There For a Twinkie: OG Twinkie Factory Shutting Down

twinkies-back-july

Hostess fans nationwide were offered snack food salvation after their beloved Twinkies returned to store shelves last summer. Though your favorite junk food sweets are safe, their birthplace is not.

Thanks to the slew of impostors and copy cats that flooded the market in Hostess’ eight month absence, the original Twinkie factory is shutting its doors for good. The Schiller Park, IL based plant gave birth to the Twinkie back in the 1930’s and closed up shop in 2012 during Hostess’ bankruptcy. The plant reopened in 2013 but even “the sweetest comeback in the history of ever” couldn’t save this OG Twinkie factory.

With Hostess fighting to stay “highly efficient and technologically advanced to compete” coupled with the fact that demand for Hostess goodies is down, the plant that employs nearly 400 workers will officially close up in October.

H/T Consumerist

Categories
Hit-Or-Miss

Twinkies Are Back! Set to Hit Shelves By Summer

twinkies are back

Damn, we bet those people who tried buying that $15 million Twinkie feel duped right about now. After reporting that Apollo Global Management and Metropoulos & Co. made a joint offer of $410 million to revive the fallen cream-filled pastries, a bankruptcy judge approved the sale of the Twinkies brand on Tuesday. The deal also includes HoHos, Ding Dongs and Sno Balls — meaning our favorite sugar-infused fambam is back.

As the NYT notes, “The sale will mean that Twinkies, born more than 83 years ago in an Illinois industrial kitchen, will live on, having survived wars, recessions and the South Beach and Dukan diets.” We predict that it will also survive the current onslaught of paleo diets and kale-crazed juicers.

Of course, the new partners are veterans in the food industry. Metropoulos & Co. owns Pabst beer, while Apollo Global Management has investments in Carl’s Jr. and Hardee’s. For those wondering if the Hostess name will be left buried under stale crumbs, don’t fret. Daren Metropoulos, one of Mr. Metropoulos’ sons and a firm executive, assured that “[t]here’s a great consumer fan base that hasn’t declined” and “a real opportunity to revitalize these brands, just with some T.L.C.”

Btdubs, the sale of Wonder Bread, Nature’s Pride, Home Pride and Merita were signed off to Flowers Foods, the makers of Tastykakes for $360 million; the sale of Hostess’ Beefsteak brand to Grupo Bimbo was also given the go-ahead at $31.9 million.

That’s all great but let’s be real, it’s all about the Twinkies.

H/T NYT + PicThx Bloomberg

Categories
Hit-Or-Miss

Goodbye Twinkies, Wonder Bread and Ding Dongs — Hostess Closing for Good

As of 7:00AM this dreary Friday morning, Hostess Brands is closed. Done. Kaput.

The same people that have brought you Ding Dongs, Twinkies and Wonder Bread for years has just announced, via their hostessbrands.com website, that the most recent Bakers Union strike has crippled their operations and forced the company to sell off all their assets.

The news of Hostess’ closing doesn’t come as a shock, as they had already filed for Chapter 11 bankruptcy back in January of this year. At the time, the Texas-based company had carried more than $860 million in debt and had been facing steadily increasing labor and raw goods costs, compounded by the declining sale of Twinkies and Ding Dongs in general.

11 months ago, we asked the question, “will Twinkies be gone forever?

11 months later, we get our answer. Here’s the press release as of 7:00 AM:

Hostess Brands is Closed.

We are sorry to announce that Hostess Brands, Inc. has been forced by a Bakers Union strike to shut down all operations and sell all company assets. For more information, go to hostessbrands.info. Thank you for all of your loyalty and support over the years.

 

HOSTESS BRANDS TO WIND DOWN COMPANY AFTER BCTGM UNION STRIKE CRIPPLES OPERATIONS

Friday, November 16, 2012 at 7:00AM

Irving, TX – November 16, 2012 – Hostess Brands Inc. today announced that it is winding down operations and has filed a motion with the U.S. Bankruptcy Court seeking permission to close its business and sell its assets, including its iconic brands and facilities. Bakery operations have been suspended at all plants. Delivery of products will continue and Hostess Brands retail stores will remain open for several days in order to sell already-baked products.

The Board of Directors authorized the wind down of Hostess Brands to preserve and maximize the value of the estate after one of the Company’s largest unions, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), initiated a nationwide strike that crippled the Company’s ability to produce and deliver products at multiple facilities.

On Nov. 12, Hostess Brands permanently closed three plants as a result of the work stoppage. On Nov. 14, the Company announced it would be forced to liquidate if sufficient employees did not return to work to restore normal operations by 5 p.m., EST p.m., Nov. 15. The Company determined on the night of Nov. 15 that an insufficient number of employees had returned to work to enable the restoration of normal operations.

The BCTGM in September rejected a last, best and final offer from Hostess Brands designed to lower costs so that the Company could attract new financing and emerge from Chapter 11. Hostess Brands then received Court authority on Oct. 3 to unilaterally impose changes to the BCTGM’s collective bargaining agreements.

Hostess Brands is unprofitable under its current cost structure, much of which is determined by union wages and pension costs. The offer to the BCTGM included wage, benefit and work rule concessions but also gave Hostess Brands’ 12 unions a 25 percent ownership stake in the company, representation on its Board of Directors and $100 million in reorganized Hostess Brands’ debt.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” said Gregory F. Rayburn, chief executive officer. “Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”

In addition to dozens of baking and distribution facilities around the country, Hostess Brands will sell its popular brands, including Hostess®, Drakes® and Dolly Madison®, which make iconic cake products such as Twinkies®, CupCakes, Ding Dongs®, Ho Ho’s®, Sno Balls® and Donettes®. Bread brands to be sold include Wonder®, Nature’s Pride ®, Merita®, Home Pride®, Butternut®, and Beefsteak®, among others.

The wind down means the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores throughout the United States.

The Company said its debtor-in-possession lenders have agreed to allow the Company to continue to have access to the $75 million financing facility put in place at the start of the bankruptcy cases to fund the sale and wind down process, subject to U.S. Bankruptcy Court approval.

The Company’s motion asks the Court for authority to continue to pay employees whose services are required during the wind-down period.

For employees whose jobs will be eliminated, additional information can be found athostessbrands.info . The website also contains information for customers and vendors. Most employees who lose their jobs should be eligible for government-provided unemployment benefits.