Wednesday, August 20, 2014

Original Twinkies factory to close in in Schiller Park, Illinois

Baked goods maker Hostess Brands LLC said today it will close its bakery in Schiller Park, Illinois.
A Hostess spokesman said the company will close the bakery, where Twinkies were first invented, to "enhance its production and distribution capabilities and efficiencies."
"Hostess has brought these great brands back to the marketplace," said Bill Toler, CEO of Hostess Brands, in a statement. "We have invested heavily in all facilities to improve worker conditions and efficiencies in a very highly competitive environment and marketplace."
"While the old Hostess company was in bankruptcy, many competitors took over the shelves and are tenaciously defending their business and thus we must be highly efficient and technologically advanced to compete," he continued. "As a result, we have invested in more efficient production capabilities and need to streamline our manufacturing infrastructure and protect our ability to compete."


The closure is expected to occur in October, Hostess said. The Chicago Sun-Times reports about 400 employees will be affected by the closing and that roughly 85 workers are employed on a contingent basis.
Hostess emerged last year from a second bankruptcy proceeding in four years and resumed selling Twinkies, its iconic snack cake, in summer 2013.
The company filed for bankruptcy in January 2012 less than three years after emerging from a first filing. Hostess is now owned by Apollo Global Management LLC and C. Dean Metropoulos & Co.
The Twinkie was invented by James Dewar in 1930, the same year that Hostess was founded as the Interstate Bakeries Corporation.
During its most recent bankruptcy proceedings, Hostess' spongy yellow cakes went out of production, prompting bidding wars for Twinkies boxes on auction sites like EBay.

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