IRVING (November 16, 2012)—Irving-based Hostess Brands said Friday it is going out of business, closing plants that make Twinkies and Wonder Bread and laying off all of its 18,500 workers.
The company says a nationwide worker strike crippled its ability to make and deliver its products at several locations.
“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 warned employees that it would file a motion in U.S. Bankruptcy Court to unwind its business and sell assets if plant operations didn't return to normal levels by Thursday evening.
The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.
Products already baked will be delivered and Hostess brands retail stores will remain open for several more days to sell already-baked products, the company said.
