ST LOUIS (LALATE) – The Hostess Strike 2012 has prompted an Ebay run on Twinkies and Ding Dongs. As Mashable wrote today, the “starting Ebay bid for a single Twinkie Is $5,000″. But lost in the sugar panic was the actual news statement by Hostess that the brand may still survive.
Hostess CEO Gregory F. Rayburn tells news that Twinkies, Wonder Bread, Ding Dongs, Ho Ho’s and Home Pride bread aren’t going away anytime soon. Rather the company may consider selling the brands to a buyer if a current labor strike is not resolved.
“Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands,” Rayburn said in a news statement this week. “Unfortunately, because we are in bankruptcy, there are severe limits on the assistance the (company) can offer you at this time,” he added.
The company entered Chapter 11 protection once before this decade, then again in January. But fear kicked in when the company said this Thursday that it will liquidate assets if the current labor strike continues indefinitely.
“We simply do not have the financial resources to survive an ongoing national strike,” Hostess CEO Gregory Rayburn said Wednesday. “Therefore, if sufficient employees do not return to work by 5 p.m., EST, on Thursday to restore normal operations, we will be forced to immediately move to liquidate the entire company, which will result in the loss of nearly 18,000 jobs.”
“It is now up to Hostess’ BCTGM-represented employees and Frank Hurt, their international president, to decide if they want to call off the strike and save this company, or cause massive financial harm to thousands of employees and their families,” Rayburn added. The company has issued a new website, hostessstrike.info, to update consumers about the future of the brand. The strike is between Hostess and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM).