Call Our Office Today: +1 (718) 329-9500
Hostess is going bankrupt and is about to liquidate. That does not mean, however, that its valuable, tasty brands, like Twinkies, Drake’s and Wonder Bread will end with the company. Hostess will try to sell these brands at auction in the near future. Since the brand names are valuable, the company reports that it expects many companies and conglomerates to participate in the auction.
The company has about 36 production plants, over 500 distribution centers and over 500 bakery outlets. The company will be closing them down under its Chapter 11 bankruptcy plan. Hostess filed for bankruptcy on January 11, 2011, according to a November 23, 2012 Thomson Reuters News & Insight article. The article transmitted unfortunate news—15,000 Hostess workers will loose their jobs very soon and the other 3,200 will only have a job for four more months. By March 2013, after employees have helped close down plants, there will only be 200 employees left in a company that once had $2.3 to $2.4 billion in annual revenue.
Many Hostess workers went on strike before the company decided to liquidate so quickly. For example, the Bakery, Confectionery, Tobacco and Grain Millers Union protested against decreases in salaries and benefits, but, in the end, the Hostess shut down turned out to be even worse for its workers. In fact, immediately after members of that union went on strike, Hostess closed three plants. The baking company was loosing $1 million per day during the strike. Also, many Hostess employees were members of the International Brotherhood of Teamsters union. Members of this union went on strike immediately after Hostess announced that it would slash salaries and benefits. This particular bankruptcy will hurt thousands of workers, but it will leave behind a legacy of brands and delicious products.
If you are suffering financial or you are considering bankruptcy contact our office at (800) 660-5299 to set up a free in person consultation. Mr. Lutzky of Jayson Lutzky, P.C. has represented thousands of satisfied clients over the past 29 years. You can visit our website,www.BankruptcyNYC.com, for more information.