Hostess goes out of business | News
BIDDEFORD, Maine (NEWS CENTER) - Hostess the maker of Twinkies, Ding Dongs and Wonder Bread, is going out of business.
PHOTO GALLERY: Hostess strike
The company, based in Irving, Texas, filed for Chapter 11 protection in January. As part of the restructuring process, Hostess told workers they must make concessions in order for the company to stay in business.
Hostess reached a contract agreement with its largest union, the International Brotherhood of Teamsters. But thousands of members in its second biggest union, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, went on strike last week to protest cuts to wages and benefits under a new contract offer.
Joining the strike were 300 workers from the Hostess plant in Biddeford. They say the company had stopped putting their money into their pension funds last year, while still taking that money out of their pay. While some workers say they could accepts cuts to their benefits and wages, they draw the line at losing their pensions. The issue was important enough to them, they decided to continue their strike even after Hostess warned them it would result in the company being forced to liquidate.