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Hostess Closing Down, Customers Stocking Up

By Justin Willis, KSEE24 News
November 16, 2012 Updated Nov 16, 2012 at 7:36 PM PDT

Hostess Brands Inc. has been baking breads and snack foods since 1930.

But the company was faced with increased labor costs, and a trend towards healthier eating.

So, Hostess had to file for bankruptcy protection in January, the second time in 10 years.

And the bakers union went on strike, whose members then refused wage and pension concessions.

Greg Rayburn, Hostess CEO: "30% of our workforce has put 18,500 people out of a job... It's a consequence of the strike. It's not a threat. It's a consequence."

Local employees who didn't want to be identified said Tuesday is their last day.

Meanwhile, union members in Philadelphia are blaming company mismanagement.

Don Devlin, Hostess Employee: "They don't care about people's families or the people here. People here gave them everything."

30 Hostess plants around the country closed immediately.

More than 500 distribution centers, and 500 bakery outlet centers nationwide are soon to follow.

Local, long time customers are now stocking up on their favorite hostess brands

Priscilla Artellan, Customer: "I was really sad. I've always grown up eating their products. Breads, Twinkies, cupcakes..."

Starlene Hale, Customer: "My mom loves them. It's been around since she was little. My 7-year-old has been eating those since she could have sweets."

Some left disappointed at the outlet store on Weber near Dakota, where some snacks were already sold out.

Michael Villareal, Customer: "I was going in there to get Twinkies, because you know, timeless classic."

Victoria Williams, Customer: "I'm kind of sad because I love Ho Ho's."

The company has stopped production on all it's snacks, and stores are quickly running out of Hostess cakes.

But, if you're in desperate need of a Twinkie fix, you can get a box on eBay for $100.

Hostess will now sell off its assets, including its iconic brand names.

If another company takes over, then this may not be the last we'll see of Hostess.

Other familiar brand names that are part of the Hostess bankruptcy include Dolly Madison, and Nature's Pride.

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