Twinkies Photo by Larry D. Moore

The makers of Twinkies and Wonderbread announced Friday morning that they would close down and begin selling their assets following a weeklong Bakers Union strike. 

They permanently closed down three factories Monday and warned that they would be forced to liquidate “if sufficient employees did not return to restore normal operations” by Thursday afternoon. The strike continued and Hostess followed through on their promise.

Chief executive Gregory F. Rayburn said in a statement, “We do not have the financial resources to weather an extended nationwide strike.” He went on to say the company “will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”

The Bakery, Confectionery, Tobacco Workers and Grain Millers Union (BCTGM) called Hostess employees to go on strike following a number of grievances and concessions, including drastic cuts on workers’ wages, benefits and pension plans. 

BCTGM claims the workers’ strike is not to blame for the company shut down. Instead they point to “over a decade of mismanagement” as Hostess’ downfall. 

Back in January the company’s $860 million debt, declining sales and rising costs for labor and raw goods culminated and forced them to file for Chapter 11 bankruptcy for the second time.  

Although those who had kept on eye on the business’s struggles are not all that surprised by Friday’s announcement, most people were shocked to hear that such an iconic aspect of the American tradition would be no more. 

The death of Ding Dongs and Sno Balls sent consumers who grew up with the products into a frenzy. 

Lovers of the sweet treats stocked up on Hostess products and caused stores everywhere to sell out. People trying to cash in on the sudden high demand are selling Twinkies online for extreme prices ranging from hundreds to thousands of dollars. Others are determined to not let go of their beloved desserts and are searching for recipes to make them from home. 

Although the future of the sweet snacks is still unknown, a couple of companies are speculated to potentially bid on Hostess’s assets and keep the brand alive.

But as Rayburn pointed out in an interview with Bloomberg Television, even if someone purchases the brand they might not also buy the employees, factories and equipment that goes along with it, leaving little consolation for workers.  

The liquidation could take up to a year, but dessert diehards, businesses and workers alike will be watching to see the fate of an American mainstay unfold. 

UPDATE: Hostess and its bakery workers' union have agreed to go into talks about the reasons for last week's strike. Bakruptcy Judge Robert Drain urged both parties to go into mediation to avoid liquedation and the loss of thousands of jobs at Monday's hearing. 

Reach Elysia Rodriguez here.