Why didn’t Hostess workers believe the threats?
That’s one of the questions we’re left with now that Hostess Brands, the maker of iconic snacks such as Twinkies and Ding Dongs, said Friday it is closing its plants and letting go some 18,000 workers as it moves toward liquidation following a strike by some of its workers.
In an announcement posted on its Web site, the company said it was “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.” CEO Gregory F. Rayburn said in the statement that “we deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike.”
The striking Bakery, Confectionery, Tobacco Workers and Grain Millers Union had been cautioned: In a move the Wall Street Journal called “a sort of warning shot,” three plants had already been shut down, eliminating 627 jobs on Monday. On Wednesday, the company said it would be forced to liquidate if enough employees did not return to work by the end of the workday Thursday. This was also not the company’s first bankruptcy.