Hostess Brands — the maker of such iconic baked goods as Twinkies, Devil Dogs and Wonder Bread — announced Friday that it is asking a federal bankruptcy court for permission to close its operations, blaming a strike by bakers protesting a new contract imposed on them.
The closing will result in Hostess’ nearly 18,500 workers losing their jobs as the company shuts 33 bakeries and 565 distribution centers nationwide, as well as 570 outlet stores. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union represents around 5,000 Hostess employees.
“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.
Apparently other companies could come along and put out the products:
A letter that Hostess sent to its network of stores that carry its product said it expects “there will be great interest in our brands.” But it said it could not give a time frame for when the sales would take place and its products would be available again.
But even if those brands are bought and restarted, the Hostess workers will not get their jobs back.
“The industry has overcapacity. We’re overcapacity. Our rivals are overcapacity,” said Rayburn in an interview on CNBC. Asked if the shutdown decision could be reversed if the Bakers’ union agreed to immediately return to work, he responded, “Too late.”
You mean businesses still have the right to make decisions about their own companies?
Someone pass a law.
Thanks to MD in Philly.
That’s the word — and he also says the Rice talking points came from the Administration:
David Petraeus is going to tell members of Congress that he “knew almost immediately after the September 11th attack, that the group Ansar al Sharia, the al Qaeda sympathizing group in Libya was responsible for the attacks,” CNN reports.
In his closed door meeting on the Hill, “[Petraeus] will also say he had his own talking points separate from U.N. ambassador Susan Rice. [Hers] came from somewhere other in the administration than his direct talking points,” Barbara Starr of CNN reports, referencing a source close to Petraeus.
The former CIA director will move to further himself from comments that didn’t accurately characterize the terror attack that Rice made 5 days after on national television shows.
“When he looks at what Susan Rice said,” CNN reports, “here is what Petraeus’s take is, according to my source. Petraeus developed some talking points laying it all out. those talking points as always were approved by the intelligence community. But then he sees Susan Rice make her statements and he sees input from other areas of the administration. Petraeus — it is believed — will tell the committee he is not certain where Susan Rice got all of her information.”
Maybe he made it clear that he was going to tell the truth, and the revealing of the affair is retaliation. If so, he should say so.