CHICAGO, Saturday, November 17, 2012. The announcement came yesterday at 7 a.m.: "Irving, TX – November 16, 2012 – Hostess Brands Inc. today announced that it is winding down operations and has filed a motion with the U.S. Bankruptcy Court seeking permission to close its business and sell its assets, including its iconic brands and facilities. Bakery operations have been suspended at all plants. Delivery of products will continue and Hostess Brands retail stores will remain open for several days in order to sell already-baked products."
Within minutes of the announcement, Twinkie mania took the nation by storm with people trying to get in touch with their inner Twinkie before it was too late.
Chicagoans were quick to react:
By 9 a.m. CST, the iconic leader of the Hostess Brands pack, Twinkies® were sold out at the Mag Mile Walgreen Store with HoHos and Ding Dongs not far behind. It was the same all over the city, Twinkies® were flying off the shelves faster than a speeding bullet.
Off the shelves and on to the Internet.
Within minutes, a ten-count box of Twinkie's was listed on eBay for an opening bid of $200,000, a joke maybe, but there were a number of serious sellers all over the Internet. Currently, Chicago's Craigslist has 41 listings for Hostess Brand products, predominately Twinkies, with prices ranging mostly in the $25 to $50 range with some hopefuls trying for $100 and upwards. Then there's the funny guy looking for $500,000--promoting a "Brand new, unopened box of 10 individually wrapped Twinkie's!!" and promising, "a piece of delicious history" that will help him get out of poverty and put his daughter thru college.
Is it Time to Write the Eulogy for Twinkie's?
If the past is any indication of the future, Chicago icons do not go gentle into the good night. (Twinkie's, a Chicago icon, was "born" just outside the city limits at River Forest's Continental Baking Co. in 1930). Other famous Chicago icons such as Frango Mints and Fannie May died only to rise again. Though it may not be true for the consumers of Twinkie's, Twinkie's themselves are survivors having survived the Depression, WWII, and more recently (2004) bankruptcy filings by the parent company. Don't count them out yet. There is plenty of interest out there from big money private companies as well as big box stores with Wal Mart gnawing at the bit. The real losers in the bankruptcy filings are Hostess’s 18,500 workers in 22 states, stretching from Alaska to New Jersey.
If You Still Need Your Twinkie Fix.
Hostess Brands plan to keep their retail outlets open for at least a week. And if all else fails, there is another option: Drive to Canada. Twinkie's are produced in Canada by Saputo Incorporated's Vachon Inc., which owns the Canadian rights to produce Hostess products and intend to continue to producing and selling the endangered Twinkie's.
Sunday, November 18, 2012. According to Hostess Brands, Twinkie's are completely SOLD OUT in the Chicago area. This also holds true for the rest of the Hostess line of dessert products. There are still some bread products available including Beefsteak, Butternut, Home Pride, Nature's Pride and Wonder breads.
Much Ado About Nothing?
There is a chance that Hostess Brands will reach an agreement with the Union and get back to business, we should know one way or the other soon. Here is the latest update: Irving, TX – November 19, 2012 – Hostess Brands Inc. announced today that it will follow a request from the U.S. Bankruptcy Court for the Southern District of New York to enter a confidential mediation on Tuesday with the Bakery, Confectionery, Tobacco and Grain Millers Union (BCTGM). Today’s hearing to consider Hostess Brands’ motion to wind down the Company and sell all of its assets has been adjourned until 11 a.m., EST, on Wednesday.
The END for Hostess Brands.
Irving, TX – November 20, 2012 - Hostess Brands Inc. announced today that a mediation today with the Bakery, Confectionery, Tobacco and Grain Millers Union was unsuccessful. The Company will have no further comment until a hearing scheduled for tomorrow at 11 a.m., EST, before the U.S. Bankruptcy Court for the Southern District of New York.
But Not for Twinkies.
Hostess Brands Inc has received a "flood of inquiries".
Filed under: Uncategorized