Posted By Matt Guillermo, Web Producer - bio | email
Hostess maintained 33 bakeries around the nation, one of which is located in Henderson.
HENDERSON, NV (FOX5) -
The nationwide liquidation of Twinkies-maker Hostess Brands includes the elimination of 171 employees in southern Nevada, the company said Friday.
The famed maker of snack cakes, including Zingers and Ho-Ho's, announced it would be shutting down operations in the midst of a work stoppage by employees.
The company said 33 bakeries and 565 distribution centers would be shut down. About 5,500 delivery routes and 570 bakery outlet stores throughout the United States were also being affected.
Hostess maintained a bakery in Henderson, which will stop production on Friday, the company said.
In a statement announcing the liquidation, the company said it was not turning a profit under its current cost structure. Much of it was a motivational point for negotiations with the bakers' union in terms of cut wages and pension costs, the company said.
"We do not have the financial resources to weather an extended nationwide strike," said Gregory F. Rayburn, Hostess CEO, in a statement. "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."
Hostess said it sought permission on Friday from U.S. Bankruptcy Court to shut down operations.
Stay tuned to FOX5 for the latest on this developing story.
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