The firm behind the iconic Twinkie is warning local employees that they may soon be out of a job. As part of its ongoing bankruptcy proceedings, Hostess Brands issued notices to some 18,000 employees across the country that their positions could be eliminated as the company restructured its debt load. Hostess employs over 200 people in the Sacramento region.
From the Sacramento Business Journal:
The filing of pending layoffs is a warning that it may have to close and liquidate the business, which has a largely unionized workforce. The largest single operation is 363 employees in Los Angeles. Sacramento’s is the second largest single Hostess location. In April, Irving, Texas-based Hostess Brands asked the bankruptcy court to throw out its union contracts if workers don’t accept a cost-cutting proposal.
As a result of its financial woes, Hostess could be sold to a viral operation or cease to exist outright.