The tale of Hostess’ demise and rise from the ashes is a fascinating case study of iconic brands, mismanagement and how private equity/buyout firms can make mind-boggling sums in the blink of an eye.
The maker of Twinkies and Ding Dongs, which operates a major plant in Indianapolis, has been reborn under new ownership after crashing in 2012 under a barrage of labor issues and rapidly changing appetites.
Hostess Brands LLC wants to have its Indianapolis plant in full production by the end of next week, an executive said Wednesday. The company received a tax incentive agreement worth $536,000 from the city on Wednesday.
The new owners of Hostess Brands are seeking a tax abatement to support investment of $10 million in new equipment for a plant on the east side that could employ up to 145 people.
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 Twinkie, it turns out, was introduced way back in 1930. In our memories, however, the iconic snack will forever be identified with the 1950s, when Hostess popularized the brand by sponsoring “The Howdy Doody Show.” And the demise of Hostess has unleashed a wave of baby boomer nostalgia for a seemingly more innocent time.
Twinkies, Ho Hos and Wonder Bread are up for sale now that a bankruptcy judge cleared the way for Hostess Brands Inc. to fire its 18,500 workers and wind down its operations.
The maker of Twinkies and Ding Dongs said late Tuesday that it failed to reach an agreement with its second-biggest union. As a result, Hostess plans to continue with a hearing on Wednesday in which a bankruptcy court judge will decide if the company can close its operations.
Hostess Brands Inc. will hold talks with its bakery workers’ union on Tuesday to explore the reasons for a strike that the maker of Twinkies and Wonder bread said will force it to liquidate.
Other companies are interested in bidding for at least pieces of Hostess because of the high brand recognition and $2.5 billion in annual revenue. Twinkies alone have brought in $68 million in revenue so far this year.
Hostess Brands Inc. said Friday it will close all of its plants, leading to the loss of hundreds of jobs in Indiana and thousands more nationwide. The company employs 288 in Indianapolis.
Hostess Brands said it likely won't make an announcement until Friday morning on whether it will move to liquidate its business, after the company had set a Thursday deadline for striking employees to return to work.
A Hostess spokesman said the company is debating whether it will close its Indiana plants after workers went on strike on Friday. Hostess employs about 875 workers in Indiana, including 288 in Indianapolis.
Hostess Brands Inc., the maker of Twinkies and Wonderbread, has received the go-ahead from a U.S. bankruptcy court judge to lower wages for thousands of bakery workers, affecting more than 400 employees in Indiana.
The Irving, Tex.-based company said the job cuts could occur in July if it does not find a buyer or emerge from bankruptcy. About 340 workers would be affected at five Indianapolis plants.
