Hostess announces Three Bakeries Closing Permanently due to Strike

keyboard - BSN

(Best Syndication News) - Hostess Brands Inc. announced today that they would be closing three bakery locations permanently because of the strike that started on November 9, 2012. The Bakery, Confectionery, Tobacco Workers, and Grain Millers International Union (Bakers Union) initiated the nationwide strike. Hostess was unable to make and deliver their products at these locations because of the strike. However, the majority of Hostess plants continue to operate and the strike would not affect customer delivery of their baked goods.

Hostess Brands CEO Gregory F. Rayburn said in a statement today that 627 employees at the three locations will lose their jobs. He explained that the company warned that there could be facility closures from work stoppage. He warns that if the strike hurts their business enough, they would have to close the entire company.

The bakery locations are in Seattle, St. Louis, and Cincinnati. The majority of employees, 365 people, were at the St. Louis location. The Cincinnati location employed 152 people, and the Seattle location employed 110 people.

Rayburn said, "Some employees are apparently under the misimpression that if they force Hostess to liquidate, another company will buy our bakeries and offer them employment. The fact is, the bakery industry already has far too much capacity, and there is a strong risk that many of our facilities may never operate as bakeries again once they are closed. I believe the leadership of the Bakers Union knows this fact, but is willing to sacrifice its Hostess employees for the sake of preventing other bakery companies from asking for similar concessions."

Rayburn continued: "That hardest part of the decision to close any facility is knowing that it will result in the loss of jobs for those Hostess Brands employees who did not support the strike and who wanted to help revive the Company," Mr. Rayburn said. "They didn't ask for these strikes, but they are paying a terrible price for them."

Hostess has a website, which will announce information about plant closures as they may arise.

In January 2012, Hostess filed for Chapter 11 bankruptcy. Hostess, is a privately owned company that was established in 1930. There are around 18,500 Hostess employees at 36 bakeries. They have around 570 bakery retail outlets and the company has 565 distribution centers that run around 5,500 delivery routes.

By: Dave Reddy

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