The future might not seem as bleak as the 2009 movie Zombieland, but even without the apocalyptic-undead epidemic, it doesn’t seem so bright for anyone who wants to enjoy a delicious golden sponge cake with a creamy filling. After a stand-off with striking workers and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), Hostess Snack Cakes recently announced that the company can no longer afford to stay in business and will be liquidating the company. Now, many people are wondering (like Woody Harrelson’s character, Tallahassee) if the Twinkie is soon to be extinct.
"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," said CEO Gregory Rayburn in a statement. Rayburn also explained, "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." Out of all the Hostess workers that will be unemployed due to the company closure, the BCTGM represents about 5,000 employees.
The strikes started after the company put forth a contract that cut workers' wages by 8 percent and benefits by 27 - 32 percent according to the BCTGM. USA Today reported BCTGM also said Hostess stopped contributing to workers' pensions last year, and the union wants pension benefits restored.
Less than a week ago Hostess informed employees they didn’t have enough workers to meet their obligations, and if those on strike didn’t come back to work, they would be forced to close the company. This wasn’t the first time Hostess gave striking staff this sort of ultimatum, however. The last time the company filed Chapter 11 in 2004, they sang the same song but wound up going to court instead of closing.
"It's been a very sad day," Rayburn told CNN. "I think that this was just a monumental failure on the part of everyone involved, and it was just the wrong outcome."
Workers met the decision with an array of emotions, but consumers echoed one giant sigh wondering why the iconic munchies maker must close its doors forever. It seems cyber space will be subjected to status updates of Gen X-ers lamenting the uncertain future of one of their favorite childhood snacks.
There’s also the special few trying to make a buck off the business’s bad luck. Stores across the country are rapidly selling out of the snack cakes and auctions are creeping up on eBay listing single packs for $5 and multiple packs for more, up to a ridiculous amount of $250,000 on a box of 10 Twinkies.
Unfortunately for these confection collectors, the production of Twinkies probably won’t be stalled for very long. Hostess is selling off its assets to the highest bidder. Whoever wins is will probably cash in on the brands that built the company up from its inception in 1930. So don’t worry, kids won’t have to grow up in a world without Twinkies, Ding Dongs, Wonder Bread and Hostess Cupcakes.
Image courtesy of Heather Fairchild
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