IRVING, Texas (AP) -- Hostess Brands Inc. says it's going out of business after striking workers across the country crippled its ability to make its Twinkies, Ding Dongs and other snacks.
The company filed a motion with U.S. Bankruptcy Court Friday seeking permission to shutter its operations and sell its brands after plants were unable to resume normal operations by a Thursday evening deadline.
The closing would mean the loss of about 18,500 jobs.
CEO Gregory Rayburn tells CNBC the financial impact of the strike makes it "too late" to save the company now, even if workers have a change of heart. He says clients decide to stop carrying products when supplies aren't adequate.
Rayburn says there is no buyer lined up for the company, but that there has been some interest in its roster of about 30 brands, which include Ho Hos, Dolly Madison, Drake's and Nature's Pride snacks. The company books about $2.5 billion in sales a year.
Colo. workers affected by Hostess closure
DENVER (AP) -- About 160 people in Colorado are losing their jobs because of Hostess Brands' plans to go out of business.
The company said Friday it sent employees at its 33 factories home on Friday, including those at a Wonder Bread plant north of Denver. The plant on Interstate 25 is well known to passing drivers because of its baking-bread smell.
The bad news led to a run on Twinkies, Ding Dongs and other treats at the plant's factory store.
Bob Anderson told the Denver Post that the scene inside was a "mad house."
As people stocked up, a Hostess employee on vacation, Yer Lor, arrived to pick up his paycheck and was told he wouldn't have a job to return to.