News Column

Hostess Closing Original Twinkies Plant

August 20, 2014

Samantha Bomkamp, Chicago Tribune

Hostess Twinkies (Hostess Brands)
Hostess Twinkies (Hostess Brands)

Aug. 20--Hostess Brands said Wednesday that it will close its Schiller Park bakery, where Twinkies were invented in 1930, affecting about 400 employees.

The plant, only one of four remaining Hostess bakeries in the country, is expected to close in October. The Schiller Park location is the only one remaining in the state.

Hostess re-opened the facility in July of last year, following its bankruptcy and purchase by private equity firms Apollo Global Management and C. Dean Metropoulos & Co. Twinkies and other Hostess treats were off store shelves for eight months before the company was revived.

But during that time, competitors introduced knock-offs that appear to be hurting sales of the original baked goods now.

"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," Hostess Brands CEO Bill Toler said in a statement to the Tribune. "As a result, we have invested in more efficient production capabilities and need to streamline our manufacturing infrastructure and protect our ability to compete."

Eighty-five of the 400 workers are employed "on a contingent basis," according to the Kansas City-based company.

The old Hostess had 11 plants with a union workforce. The employees that were hired back by the new Hostess Brands are largely non-union.

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(c)2014 the Chicago Tribune

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Original headline: Hostess Twinkie plant in Schiller Park closing


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Source: (c)2014 the Chicago Tribune


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