IBJNews

Hostess to open bakery in Indianapolis

Back to TopCommentsE-mailPrintBookmark and Share

Hostess Brands LLC said Monday that it will open bakeries in Indiana and Illinois, following announcements last week that it will reopen bakeries in Georgia and Kansas in its effort to bring back some of its snack brands.

The predecessor to Hostess Brands filed for bankruptcy protection in 2012 after years of turmoil and later decided to go out of business after a nationwide strike crippled its operations.

Private equity groups Apollo Global Management and Metropolis & Co. — now doing business as Hostess Brands — paid $410 million to buy the Hostess and Dolly Madison snack cake lines as well as five plants as part of the company's liquidation process.

The investment firms are now trying to revive operations in order get Twinkies, Ho Hos and other popular snack cakes back on shelves by the end of July.

Hostess Brands said Monday that it will open bakeries in Indianapolis and Schiller Park, Ill. The company has already begun accepting applications at some sites and begins hiring next month. The company expects some locations will begin operating in late May.

Hostess also tried to combat the perception that the company is anti-union. It said in a statement Monday that Hostess respects union rights and will not discriminate against job applicants on the basis of union membership or union activities and would respect associated legal obligations.

ADVERTISEMENT

  • jobs are jobs
    I'm unemployed, permanently laid of from a non-union position. If Hostess has jobs, I'm, applying. Look forward, not backward.
  • perfectly illustrated
    The fact that the plants are being opened in Right to work states should not be lost on anyone. Traditionally the south has lower labor costs, however they have chosen to create jobs in the generally more expensive states that do not have the same Union risk. In a lot of ways it would be easier to re-open existing facilities, but is simply not worth the risk.
  • losing proposition
    That sounds like a bad business plan. The cost of union labor is only part of the reason why Hostess went out of business. There is plenty of competition in the junk food market and consumers have been trending towards healthier food options. It may have been plausible for a profitable bakery chain to integrate Hostess products into their existing line of products. Trying to restart a shuttered factory with a lower salaried workforce sounds like a recipe for disaster.
  • MMMM.
    What about the collector's items? Will the Twinkies that people ran out to buy the last of several months still be worth more than $1.59? By the way, to Charlie Ponzi, feel free to criticize the mayor all you like, but the nationality of someone the mayor gives a subsidy to is not relevant to the appropriateness of that action. When you make those kind of statements, it actually makes people ignore the possibly otherwise valid criticism.
  • Good for the blue collar workers!
    Will Mayor Marine give them $6,000,000 for "Cricket Fields" or $6,500,000 to build a "Private Parking Garage"? Oh he wouldn't do that unless they were owned by a Egyptian Businessman or Political Donor! Freehand of the marketplace with no political payoffs to cronies in play here !

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. With Pence running the ship good luck with a new government building on the site. He does everything on the cheap except unnecessary roads line a new beltway( like we need that). Things like state of the art office buildings and light rail will never be seen as an asset to these types. They don't get that these are the things that help a city prosper.

  2. Does the $100,000,000,000 include salaries for members of Congress?

  3. "But that doesn't change how the piece plays to most of the people who will see it." If it stands out so little during the day as you seem to suggest maybe most of the people who actually see it will be those present when it is dark enough to experience its full effects.

  4. That's the mentality of most retail marketers. In this case Leo was asked to build the brand. HHG then had a bad sales quarter and rather than stay the course, now want to go back to the schlock that Zimmerman provides (at a considerable cut in price.) And while HHG salesmen are, by far, the pushiest salesmen I have ever experienced, I believe they are NOT paid on commission. But that doesn't mean they aren't trained to be aggressive.

  5. The reason HHG's sales team hits you from the moment you walk through the door is the same reason car salesmen do the same thing: Commission. HHG's folks are paid by commission they and need to hit sales targets or get cut, while BB does not. The sales figures are aggressive, so turnover rate is high. Electronics are the largest commission earners along with non-needed warranties, service plans etc, known in the industry as 'cheese'. The wholesale base price is listed on the cryptic price tag in the string of numbers near the bar code. Know how to decipher it and you get things at cost, with little to no commission to the sales persons. Whether or not this is fair, is more of a moral question than a financial one.

ADVERTISEMENT