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When Hostess shocked America last week by announcing that it would permanently shut down operations, people went rushing out to buy Twinkies and their other favorite Hostess products. The prices for Twinkies even skyrocketed online. The company’s CEO is telling fans to relax. Twinkies will likely survive, but just at another company.
Hostess and its products are recognized brand names across the country and the company makes $2.5 billion in revenue each year, notes the AP. Twinkies alone accounted for $68 million of the company’s 2012 revenue. So, it should be no surprise that Hostess’ CEO is confident that another company will buy the names.
“I think we’ll find buyers,” CEO Gregory F. Rayburn told ABC News. “A few have surfaced already since Friday expressing interest in the brand to acquire them.”
“The problem has always been the cost structure, the union rules, the pension legacy, the pension cost and the cost structure,” Rayburn added, explaining why the company had to close.
Hostess announced Friday that it was closing. The company had imposed wage cuts on employees, which resulted in a nationwide strike.
The company has struggled to compete with healthier snack options. It first filed for bankruptcy in 2004 and then again this January. It will head again to bankruptcy court Monday.
Management mistakes, such as recently revealed pay increases for executives, were also to blame.
While Hostess had said Friday that they would be putting their products up for auction, several people tried to take advantage of the rush to get more Twinkies this weekend. Hundreds of auctions for Twinkies, Devil Dogs and other Hostess products have popped up on eBay.