Hostess Files for Bankruptcy

By: Associated Press
By: Associated Press

IRVING, Texas (AP) -- Hostess Brands Inc. says it's going out of business after striking workers across the country crippled its ability to make its Twinkies, Ding Dongs and other snacks.
The company filed a motion with U.S. Bankruptcy Court Friday seeking permission to shutter its operations and sell its brands after plants were unable to resume normal operations by a Thursday evening deadline.
The closing would mean the loss of about 18,500 jobs.
CEO Gregory Rayburn tells CNBC the financial impact of the strike makes it "too late" to save the company now, even if workers have a change of heart. He says clients decide to stop carrying products when supplies aren't adequate.
Rayburn says there is no buyer lined up for the company, but that there has been some interest in its roster of about 30 brands, which include Ho Hos, Dolly Madison, Drake's and Nature's Pride snacks. The company books about $2.5 billion in sales a year.


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