Hostess Closure Means Locals Lose Jobs

Yes the Twinkie and the Ho Ho may not be available for snacking, but there are people who lost their jobs when Hostess closed its doors.

Friday, Nov 16, 2012  |  Updated 10:47 PM PDT
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Hostess announces it's shutting down and selling off its iconic brands.  NBC's Mark Barger reports.

NBC

Hostess announces it's shutting down and selling off its iconic brands. NBC's Mark Barger reports.

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The bankruptcy of Hostess Brands Inc. made headlines across social media and news websites Friday as people across the country mourned the loss of the Twinkie.

But the news means more than a loss of a snack food option for 145 people who work at the Oakland bakery and numerous retail outlets around the Bay Area.

They are loosing their jobs because of the shut down.

The company, known for its Twinkies, Ho Hos and Wonder Bread announced Friday morning that it is shutting down operations and has filed a motion in U.S. Bankruptcy Court seeking permission to sell its brands and facilities.

Company officials blamed the decision on a recent strike by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union.

"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," CEO Gregory F. Rayburn said.

"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." 

Local union officials were not immediately available for comment. The Colombo bakery at 580 Julie Ann Way in Oakland, a facility with around 145 employees, closed Friday, according to Hostess spokeswoman Anita Marie Laurie.

A voicemail recording at the bakery today directs employees not to come in to work. Hostess also has retail outlets around the Bay Area, in cities including San Pablo, San Leandro, Vallejo, Pittsburg, Dublin, Santa Rosa, Santa Clara and San Jose.

A statement on the company's web site indicates that retail stores may stay open for "several days" in order to sell already-baked products. The shutdown will affect 33 bakeries, 565 distribution centers, 5,500 delivery routes and 570 bakery outlets nationwide.

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