More Than 400 in Missouri Lose Jobs in Hostess Shut Down
By: Missouri News Horizon
Updated: November 16, 2012
(ST. LOUIS, Mo.) A well-known bakery is shutting down and taking more than 400 jobs in Missouri with it.
Hostess Brands says it is going out of business, closing plants making products like Twinkies and Wonder Bread. That includes plants in St. Louis and Boonville.
Hostess Brands says it is going out of business, closing plants making products like Twinkies and Wonder Bread. That includes plants in St. Louis and Boonville.
"We're going to complete our baking today and that will be the last that our production lines will be run, and we'll be sending employees home at the end of the day today," said company spokesman Eric Halvorson.
The company says a nationwide worker strike crippled its ability to make and deliver its products at several locations.
"That strike disrupted our ability to bake our goods and deliver them. We asked them to return to work, they did not and that's what brought the company down."
Nationwide 18,500 workers in 36 bakeries will lose their jobs. 365 workers man the St. Louis plant, another 80 work at Hostess in Boonville.
Halvorson says those workers won't receive much help from the company.
"It's going to be very limited, no severance. Essentially, the company is out of money, so we're shutting down rapidly."
The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.
The company says a nationwide worker strike crippled its ability to make and deliver its products at several locations.
"That strike disrupted our ability to bake our goods and deliver them. We asked them to return to work, they did not and that's what brought the company down."
Nationwide 18,500 workers in 36 bakeries will lose their jobs. 365 workers man the St. Louis plant, another 80 work at Hostess in Boonville.
Halvorson says those workers won't receive much help from the company.
"It's going to be very limited, no severance. Essentially, the company is out of money, so we're shutting down rapidly."
The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.
Comments
Just to inform you, the higher up all took the same pay cut as everyone else. The Bakers Union were the only ones that had a problem taking the pay cut. Now they all said "oh we cant afford an pay cut" lower your standards alittle, cut back on your spending alittle bit, get things that you need. Now what i dont understand is that if they couldnt afford to take a pay cut then how are they going to afford things now? Now they have no job....was it really worth it to lose your job? It was either take the paycut and still have some money to pay bills and buy what you need, or not have any money at all to do that. They made dang good money, 8% was not going to break them.
Ashley A.
November 18, 2012 at 9:13 am
Another corporation that refuses to give up their high corporate pay and high dollar jets and multiple houses and high dollar lifestyles. And insists on cutting benefits and pay of the people that work to make the company what it is. Proof of this is their bankruptcy record and the record of performance of their workers.
It is clear what brought the company down is poor management and unfair labor practices by said management
Catfish B.
November 17, 2012 at 1:15 am
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