The End of the Twinkie as we Know it – Hostess to Close

Hostess, the company that makes the Twinkie, is all over the news lately. Instead of giving in to striking employees they are liquidating the company. Killing the company doesn’t make sense to me, but apparently it’s the best move for the company.

Is this the end of the Twinkie as we know it? Can the Twinkie be saved?

How Hostess Started and Where it is Now.

Hostess started as the Interstate Bakeries Corporation in the 1930. They made Butternut bread and Dolly Madison cakes. In 1985 they acquired the Continental Baking Company from Ralston Purina. They acquired Wonder bread and Hostess cakes – including the famous Twinkie.

In 2004, IBC filed for bankruptcy – one that lasted 5 years. After losing over 54 stores and 300 outlets, the company re-branded to the Hostess name. This would take them out of chapter 11 for a couple years. However the company went back into bankruptcy in December 2011.

History of the Twinkie

The famous yellow cake with cream filling was actually invented in the 1930’s in Schilling Il when the strawberry shortcake machine was out of season. James Alexander Dewar decided to use the machine to stuff cream into a spongy cake. The first Twinkies were filled with banana cream but switched to vanilla around World War II (when bananas were rationed).

Why Hostess is Liquidating – the Poison Pill.

Apparently to try and keep the company solvent, they needed to cut union benefits. The employees didn’t like that course of action so they decided to strike. Hostess – who might not be able to meet the employees needs – chose to liquidate the company.

CEO Gregory F. Rayburn stated today, “Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.” Hostess has 24 different brands including Beefsteak, Blue Ribbon and Nature’s Pride.

Is the Twinkie Dead?

No need to storm the stores and stock up on those delicious yellow cakes. That is, unless your Woody Harrelson and we are close to a zombie Apocalypse. Most likely someone will buy the brands and incorporate into their company’s profile.