Hostess Ditches Union Workers – Plans July Twinkie Relaunch

twinkie
Hostess union workers were hoping its new owners would rehire them after purchasing the bankrupt cakes company.
Didn’t happen.

Striking workers forced Hostess to close its doors in November 2012 and lay off 18,000 employees.

Twinkie Comeback–
Hostess Twinkies are returning to store shelves in July – But they will be made by non-union workers.
StLToday reported:

Hostess is betting on a sweet comeback for Twinkies when they return to shelves next month.

The company that went bankrupt after an acrimonious fight with its unionized workers last year is back up and running under new owners and a leaner structure. It says it plans to have Twinkies and other snack cakes back on shelves starting July 15.

Based on the outpouring of nostalgia sparked by its demise, Hostess is expecting a blockbuster return next month for Twinkies and other sugary treats, such as CupCakes and Donettes. The company says the cakes will taste the same but that the boxes will now bare the tag line “The Sweetest Comeback In The History Of Ever.”

Hostess Brands Inc. was struggling for years before it filed for Chapter 11 bankruptcy reorganization in early 2012. Workers blamed the troubles on years of mismanagement, as well as a failure of executives to invest in brands to keep up with changing tastes. The company said it was weighed down by higher pension and medical costs than its competitors, whose employees weren’t unionized.

To steer it through its bankruptcy reorganization, Hostess hired restructuring expert Greg Rayburn as its CEO. But Rayburn ultimately failed to reach a contract agreement with its second largest union. In November, he blamed striking workers for crippling the company’s ability to maintain normal production and announced that Hostess would liquidate.

The shuttering triggered a rush on Hostess snack cakes, with stores selling out of the most popular brands within hours…

…The trimmed-down Hostess Brands LLC has a far less costly operating structure than the predecessor company. Some of the previous workers were hired back, but they’re no longer unionized.

Hostess will also now deliver to warehouses that supply retailers, rather than delivering directly to stores, said Rich Seban, the president of Hostess who previously served as chief operating officer. That will greatly expand its reach, letting it deliver to dollar stores and nearly all convenience stores in the U.S.

Previously, he said Hostess was only able to reach about a third of the country’s 150,000 convenience stores.

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