Hostess Brands Inc to close and another 18,500 go unemployed
Posted By RichC on November 16, 2012
Hostess Brands Inc., an 82-year old business with household brands such as Twinkie, Ho-Hos, Ding-Dongs and Wonder Bread will close its doors and liquidate assets after a bitter battle with unions and millions of dollars from venture capital in hopes to save the company. This morning CEO Greg Rayburn talked for 10 minutes with the CNBC Squawkbox crew about the decision.
CNBC interview with Greg Rayburn (mp3) — Hostess Brands, Inc.
No doubt the trademark brands will be relaunch under different ownership, but the 18,500 employees depending on a paycheck, a future and secure retirement can thank the bakers union (BCTGM) who represent about 30% of the workers in the company. Other unions negotiated in good faith according to turn-around CEO Rayburn, the bakers’ union chose instead to strike.
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