Hostess filed for liquidation of all of its assets on Friday, shutting down all of factories across the United States, putting 18,500 employees out of work.
Hostess, which also made Wonder Bread in addition to its signature line of snack products, has seen business drop significantly during the past few years as consumers gravitated toward more healthy choices for snacks.
The company filed for bankruptcy, for the second time, in January and was hoping to gain concessions from its unionized employees in order to attempt to return to profitability. However, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union organized a nationwide strike against Hostess, and company officials ordered a shutdown of all plants.
According to the bakery union, Hostess failed because a number of management teams employed by the company failed to make it profitable, not because workers didn’t make requested concessions.
As word of the closure spread, social media sites, such as Twitter and Facebook, were inundated with comments and posting reminiscing about Hostess and their snack products.
Grocery and bakery outlet stores were also flooded with buyers looking to make one final purchase of their favorite childhood snacks.
Shoppers at Hostess outlet stores nationwide endured hourlong lines to make purchases, often sever grocery bags worth, of the company’s snack products,
“People were saying they had been coming here for 15 years,” said Ryan Anderson, who had a bag filled with boxes of Twinkies from an outlet store in Phoenix, Ariz. “They are hugging the cashiers, who said they have worked here 25 years.”
Some were quick to try to take advantage of the closing as boxes of Twinkies and other snack products began showing up on auction sites, such as eBay. The prices for a box of 10 Twinkies was going for upward of $200 late Friday.
Although no buyers have emerged, this is not likely the end for some of Hostess’ signature products. Analysts expect the company to sell off its many of its brands during the liquidation. It is possible that Hostess may sell their brands one by one, or may bundle all its 30 brands in one deal.
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