Hostess why out of business

Related: The end of Hostess. The company said it had been making million Twinkies and million loaves of Wonder Bread annually before Friday's shutdown. Bimbo Bakeries, maker of the Arnold and Stroehmann brands, is the No. The company had given a 5 p. ET Thursday deadline for the bakers to return to work or face a shutdown of the company. Related: The history of labor battles at Hostess.

In September, membership of one of its major unions, the International Brotherhood of Teamsters, voted narrowly to accept a new contract with reduced wages and benefits. The Bakers' union rejected the deal , however, prompting Hostess management to secure permission from a bankruptcy court to force a new concession contract on workers. The Teamsters union, which represents 6, Hostess workers, issued a statement blaming mismanagement by Hostess executives for the company's problems.

But it also was critical of the decision of Bakers' union, although it did not identify the union by name. Related: Don't worry - Twinkies will survive. According to the company presentation, revenue and net income are forecast to climb over the next few years. Hostess, however, remains a small player in the stagnant baked goods market.

According to Euromonitor, category volume rose 1 percent in while dollar sales gained 2 percent. Jonathan Berr is an award-winning journalist and podcaster based in New Jersey whose main focus is on business and economic issues. Jonathan Berr Jonathan Berr is an award-winning journalist and podcaster based in New Jersey whose main focus is on business and economic issues.

Please enter email address to continue. Please enter valid email address to continue. The company, founded in , was fighting battles beyond labor costs. Competition is increasing in the snack space, and Americans are increasingly conscious about healthy eating. Hostess Brands had warned employees that it would file a motion in U. Bankruptcy Court to unwind its business and sell assets if plant operations didn't return to normal levels by Thursday evening. Hostess posted a statement on a corporate Web site Friday morning, saying "The Company determined on the night of Nov.

The privately held Texas company filed for protection in January, its second trip through bankruptcy court in less than a decade.