A sign hangs on a tree outside the Hostess plant in northeast Philadelphia Sunday.
Hostess Brands Inc. is permanently closing three bakeries following a nationwide strike by its bakers union.
The maker of Twinkies, Ding Dongs and Wonder Bread said Monday that the strike has prevented it from producing and delivering products, and it is closing bakeries in Seattle, St. Louis and Cincinnati. The facilities employ 627 workers.
Hostess, based in Irving, Texas, operates 36 bakeries nationwide and has about 18,300 employees. It warned earlier this month that the strike, by about 30 percent of its workforce, could lead to bakery closures.
"We deeply regret this decision, but we have repeatedly explained that we will close facilities that are no longer able to produce and deliver products because of a work stoppage - and that we will close the entire company if widespread strikes cripple our business," Hostess Brands CEO Gregory F. Rayburn said.
Hostess said customers will not be affected by the closures.
A representative for the union could not be reached immediately for comment Monday.
Thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike Nov. 9 to protest cuts to wages and benefits under a new contract offer, which the union rejected in September. Union officials say the company stopped contributing to workers' pensions last year.
Hostess has argued that workers must make concessions as it tries to improve its financial position. The privately-held food maker filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade. Hostess cited increasing pension and medical costs for employees as one of the drivers behind its latest filing.
The company, founded in 1930, is fighting battles beyond labor costs, however. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating.
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Monday, May 20 2013 5:13 PM EDT2013-05-20 21:13:26 GMT
The family of the 5-year-old kindergartner abducted in broad daylight from her Philadelphia school is now planning on suing the city and the school district.
The family of the 5-year-old kindergartner abducted in broad daylight from her Philadelphia school is now planning on suing the city and the school district.
Monday, May 20 2013 4:38 PM EDT2013-05-20 20:38:01 GMT
A century-old community staple in Cherry Hill was up for auction Monday. The Woodcrest Country Club has experienced some financial problems recently, and after efforts from the township and the Freeholders
Cherry Hill's Woodcrest Country Club went up for auction Monday, with a pending sale in place after an offer from a Marlton-based developer.
Monday, May 20 2013 3:36 PM EDT2013-05-20 19:36:33 GMT
Philadelphia Police have released surveillance video hoping that someone will recognize the suspect wanted a fatal stabbing. At 5:09 AM, on April 16, police were called out to the 400 block of Vollmer
Philadelphia Police have released surveillance video hoping that someone will recognize the suspect wanted a fatal stabbing. At 5:09 AM, on April 16, police were called out to the 400 block of Vollmer
Monday, May 20 2013 2:22 PM EDT2013-05-20 18:22:16 GMT
Tuesday morning will feature another round patchy fog. It will be a mild and muggy start with temps in the mid 60s for the city and around 60 for the suburbs. Look for more clouds than sun with highs the low 80s. There could be a few spotty showers during the day.
Monday, May 20 2013 2:21 PM EDT2013-05-20 18:21:09 GMT
A picture taken of the rare Ben Franklin bust, valued at $3 million. The bust was stolen from a Brywn Mawr home in August.
A housekeeper has been sentenced to six years in federal prison in the theft of a Benjamin Franklin bust stolen in suburban Philadelphia and reportedly worth $3 million.Andrea Lawton, 47, of Mobile, Ala.,
A housekeeper has been sentenced to six years in federal prison in the theft of a Benjamin Franklin bust stolen in suburban Philadelphia and reportedly worth $3 million.Andrea Lawton, 47, of Mobile, Ala.,
A sign hangs on a tree outside the Hostess plant in northeast Philadelphia Sunday.
