No more Twinkies or Wonder Bread - Hostess goes bankrupt

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Fri. Nov 16
MNH - A well-known bakery that has been in operations for 82 years is shutting down and taking more than 400 jobs in Missouri and over 18,000 jobs nation wide with it.

Hostess Brands says it is going out of business, closing plants making products like Twinkies and Wonder Bread. That includes plants in St. Louis, Boonville, and the company's 36 bakeries across the country.

“We’re going to complete our baking today and that will be the last that our production lines will be run, and we’ll be sending employees home at the end of the day today,” said company spokesman Eric Halvorson.

The company says a nationwide worker strike crippled its ability to make and deliver its products at several locations.

“That strike disrupted our ability to bake our goods and deliver them. We asked them to return to work, they did not and that’s what brought the company down.”

Nationwide 18,500 workers in 36 bakeries will lose their jobs. 365 workers man the St. Louis plant, another 80 work at Hostess in Boonville. Halvorson says those workers won’t receive much help from the company.

“It’s going to be very limited, no severance. Essentially, the company is out of money, so we’re shutting down rapidly.”

The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.

Is the American economy actually rebounding from the recession when an 82-year-old company goes under.