Hostess to close, lay off 145 in Oakland
Posted on November 16, 2012 at 20:43 PM EST
Hostess to close, lay off 145 in Oakland [...] her plans were waylaid on Friday when Hostess Brands Inc. - maker of such iconic snacks as Twinkies, Ding Dongs and HoHos - said it is closing all 33 plants and 565 distribution centers nationwide and laying off 18,500 workers, including 145 in Oakland. Saddled with debt after a previous bankruptcy, the struggling company tried to implement an 8 percent pay cut, pension-plan cutbacks and a 17 percent increase in employee health care costs, as well as changing some work conditions. [...] since Hostess entered Chapter 11 protection in January, a bankruptcy judge must sign off on the Irvine, Texas, company's plan to go out of business. Even with a shutdown, the company's 30 brands, which also include Dolly Madison, Drake's and Nature's Pride, are likely to end up in the hands of a liquidation firm, although many are a throwback as people become more health conscious. Needed discountsA few miles away at the Hostess Bakery Thriftshop in San Leandro, the shelves were rapidly being stripped by eager customers who filled shopping carts with baked goods. While some stores drew hipsters stocking up on ironic souvenirs or trophies to hawk on eBay, most shoppers at the San Leandro outlet store said they were regular customers who depend on the discounts to help stretch their food dollars.
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