Hostess Closing Twinkie Bakery In Schiller Park Again
CHICAGO (CBS) -- For the second time in less than two years, Hostess is closing the Schiller Park bakery the famous Twinkie snack cake was invented.
Luckily, this time it doesn't mean Hostess snack cakes will disappear from store shelves.
The company's Schiller Park bakery is where Twinkies were invented in 1930. The company said that bakery is expected to close in October, as part of an effort "to enhance its production and distribution capabilities and efficiencies," according to a statement from Hostess Brands, LLC.
"Hostess has brought these great brands back to the marketplace," said Bill Toler, CEO of Hostess Brands, LLC. "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. As a result, we have invested in more efficient production capabilities and need to streamline our manufacturing infrastructure and protect our ability to compete."
Hostess spokeswoman Hannah Arnold said about 400 employees at the Schiller Park bakery will be affected, including 85 who are employed "on a contingent basis."
"Severance packages as well as outplacement services are being offered to the affected employees," Arnold said.
The company has three other bakeries in Indiana, Georgia, and Kansas, which will remain open.
Hostess closed all its bakeries in November 2012, as it filed for bankruptcy, but bidders quickly lined up to buy its brands. Two private equity firms, Apollo Global Management and Metropoulos & Co., bought Hostess for $410 million a few months later, and got Twinkies, Ho Hos, Ding Dongs, and other snack cakes back on store shelves by summer 2013.
