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Hostess moves to shut down amid strike, with 600 Utah jobs at stake
Snack maker » The company blames union strike, but it has been struggling for years.


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Hostess CEO Rayburn said in a letter to employees posted on the company website that "Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands."

He added that all employees will eventually lose their jobs, "some sooner than others."

At a glance

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Hostess in Utah

Employees » About 600

Regional bakeries » One each in Salt Lake City and Ogden

Retail stores » 11

Depots » 9, where company trucks drop off and pick up goods.

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"Unfortunately, because we are in bankruptcy, there are severe limits on the assistance the (company) can offer you at this time," Rayburn wrote.

Hostess had said the strike seriously affected production at about a dozen of its plants. Three plants were closed earlier this week.

The company had already reached a contract agreement with its largest union, the International Brotherhood of Teamsters. The Teamsters had urged the bakery union this week to conduct a secret ballot on whether to continue striking.

Hostess, founded in 1930, was fighting battles beyond labor costs. Competition is increasing in the snack space, and Americans are increasingly conscious about healthy eating. Hostess also makes Dolly Madison, Drake’s and Nature’s Pride snacks.

The Associated Press contributed to this story.




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