“Hostess to Liquidate, Lay Off 18,500 After Crushing Union Fight”
Well, as my childless, well-to-do leftist friend quipped on facebook, this will save generations of people from Type II diabetes! Which is just another way of saying “let them eat arugula!”
Failing to persuade striking employees to return to work, Hostess Brands disclosed plans on Friday to liquidate its assets and lay off most of its 18,500 workers, bringing the 82-year-old maker of Wonder Bread and Twinkies to the end of its line.
The painful decision to wind down the Irving, Texas.-based private company follows a nationwide strike that Hostess said severely constrained its operations.
Hostess said delivery of its products, which include Ding Dongs and CupCakes, will continue and its retail stores will keep their lights on for several days to sell already-baked products.
“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” Hostess CEO Gregory Rayburn said in a statement.
As a result of the liquidation, Hostess said it will “move promptly” to lay off “most” of its 18,500 employees and focus on “selling its assets to the highest bidders.”
The company will now be forced to close its 33 bakeries, 565 distribution centers, 5,500 delivery routes and 570 bakery outlet stores throughout the U.S.
The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union pushed back against the Rayburn blaming the liquidation on the unions.
“The truth is that Hostess workers and their Union have absolutely no responsibility for the failure of this company. That responsibility rests squarely on the shoulders of the company’s decision makers,” Frank Hurt, BCTGM International Union President, said in a separate statement released on Wednesday.
Well, on the plus side, at least he didn’t blame it on Bush.
Also on the plus side? All these economically illiterate progressive bullies threatening to boycott businesses that introduce layoffs as a result of now negligible profit margins (or actually losing money) due to increases in taxes and regulatory burdens, intransigent unions, and ObamaCare, won’t have anything left to boycott, in this case.
But no worries: maybe they can turn that energy to something useful and send out 18,500 “Get Well Soon” cards, along with instructions on how to apply for food stamps.
(h/t Terry H)