The Commercial-News, Danville, IL

Local News

November 16, 2012

Hostess forces store closure

Butternut Bread to lock up Tuesday

DANVILLE — A longtime bread store will close next week due to Hostess shutting down its operations. Butternut Bread, 11 E. Liberty Lane, will be closing on Tuesday, a casualty of Hostess’ bankruptcy.

About 10 people locally will lose their jobs, including three clerks and 10 drivers.

Starting today, everything is 50 percent off at the store.

Clerk Andrea Pratt said if the store stays open its regular hours on Tuesday, it will close at 7 p.m. Pratt has worked at the store for five years.

“I knew what was going on. They prepared us,” she said about the store closing.

She said signs will go up on Saturday informing customers about the closure, but Pratt said she’s been telling them the sad news already. Pratt said she’s not sure what she will do for employment now.

The store has been on Liberty Lane for at least 15 years, Pratt estimated.

Customer Marianne Venute said she’s sad about the closing. She shopped at the store for specific items, such as fig bars, breadsticks and cupcakes. Hostess cupcakes are a favorite of hers since she was a little girl.

“They are a staple in my life,” she said.

Locally in 2007, another bread store, the Sunbeam bread store, closed on Gilbert Street.

According to Hostess Brands’ website, “We are sorry to announce that Hostess Brands, Inc. has been forced by a Bakers Union strike to shut down all operations and sell all company assets. Thank you for all of your loyalty and support over the years.”

According to a Hostess press release, Hostess Brands Inc. on Friday announced that it is winding down operations and has filed a motion with the U.S. Bankruptcy Court seeking permission to close its business and sell its assets, including its iconic brands and facilities.

Bakery operations have been suspended at all plants. Delivery of products will continue and Hostess Brands retail stores will remain open for several days in order to sell already-baked products.

The board of directors authorized the wind down of Hostess Brands to preserve and maximize the value of the estate after one of the company’s largest unions, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), initiated a nationwide strike that crippled the company’s ability to produce and deliver products at multiple facilities.

On Monday, Hostess Brands permanently closed three plants as a result of the work stoppage. On Wednesday, the company announced it would be forced to liquidate if sufficient employees did not return to work to restore normal operations on Thursday. The company determined on Thursday night that an insufficient number of employees had returned to work to enable the restoration of normal operations.

The BCTGM in September rejected a last, best and final offer from Hostess Brands designed to lower costs so that the company could attract new financing and emerge from Chapter 11. Hostess Brands then received court authority on Oct. 3 to unilaterally impose changes to the BCTGM’s collective bargaining agreements.

Hostess Brands is unprofitable under its current cost structure, much of which is determined by union wages and pension costs. The offer to the BCTGM included wage, benefit and work rule concessions but also gave Hostess Brands’ 12 unions a 25 percent ownership stake in the company, representation on its board of directors and $100 million in reorganized Hostess Brands’ debt.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” said Gregory F. Rayburn, chief executive officer, in the press release. “Hostess Brands will move promptly to lay off most of its 18,500-member work force and focus on selling its assets to the highest bidders.”

In addition to dozens of baking and distribution facilities around the country, Hostess Brands will sell its popular brands, including Hostess, Drakes and Dolly Madison, which make iconic cake products such as Twinkies, CupCakes, Ding Dongs, Ho Ho’s, Sno Balls and Donettes. Bread brands to be sold include Wonder, Nature’s Pride, Merita, Home Pride, Butternut and Beefsteak, among others.

The wind down means the closure of 33 bakeries, 565 distribution centers, about 5,500 delivery routes and 570 bakery outlet stores throughout the United States.

The company asked the court for authority to continue to pay employees whose services are required during the wind-down period.

Most employees who lose their jobs should be eligible for government-provided unemployment benefits.

1
Text Only
Local News
  • Police, Fire Reports

    April 16, 2014

  • Hoopeston council hears water project update

    Mike Streff, Foth Infrastructure & Environment, LLC, updated city council members Tuesday on the continuing progress of the ground and elevated water storage tank project.

    April 16, 2014

  • Trojans get past Ramblers

    STAFF REPORT sports@dancomnews.com ATTICA, Ind. -- Regan Foster hit a home run and drove in three runs as the Covington softball team defeated Attica 8-5 on Tuesday in Wabash River Conference action. Andi Taylor had three hi

    April 16, 2014

  • Mayor looks for fire committee members by Labor Day DANVILLE - Now with budget discussions done for the time being, Mayor Scott Eisenhauer is looking for people to serve on a committee to analyze the fire division and its future. He'd like recommendations from the committee to the city council by Labo

    April 16, 2014

  • Salary talks go on at meeting DANVILLE -- Few members of the Vermilion County Board came out strongly for or against the issue of salaries for county offices and positions. Members of the Vermilion County Board discussed the issue of salary increases for offices up for election i

    April 16, 2014

  • Hoopeston group discusses economic development

    Economic growth was on the agenda Monday night in Hoopeston as about 50 people gathered at St. Anthony's Parish Hall to discuss an economic development strategy for the city.

    April 15, 2014

  • Covington Middle School students win at Purdue Science Fair

    Eighth-grader A.J. Kline and seventh-graders Shiley Claypool and Diana Shelby told school board members about their science fair projects Monday night. They competed at the Lafayette Regional Science and Engineering Fair at Purdue University last month.

    April 15, 2014

  • Oakwood sells its water and sewer systems

    Village trustees are faced with a responsibility many small towns would love to have — what to do with $2 million in cash.

    April 15, 2014

  • SpaceX delays station delivery launch CAPE CANAVERAL, Fla. -- A space station cargo ship will remain Earthbound for a while longer. With less than two hours remaining, the Space X company called off Monday's planned launch from Cape Canaveral. A new launch date was not set; the next atte

    April 15, 2014

  • Banquet to honor Shockey

    April 15, 2014

E-edition
AP Video
Raw: Ferry Sinks Off South Korean Coast Town, Victims Remember Texas Blast Freeze Leaves Florida Panhandle With Dead Trees At Boston Marathon, a Chance to Finally Finish Are School Dress Codes Too Strict? Raw: Fatal Ferry Boat Accident Suspicious Bags Found Near Marathon Finish Line Boston Marks the 1st Anniversary of Bombing NYPD Ends Muslim Surveillance Program 8-year-old Boy Gets His Wish: Fly Like Iron Man Sex Offenders Arrested in Slayings of CA Women India's Transgenders Celebrate Historic Ruling Tributes Mark Boston Bombing Anniversary Raw: Kan. Shooting Suspect Faces Judge
NCAA basketball
NDN Video
Baby Sloths Squeak for Their Cuddle Partners in Adorable Video Miley Cyrus Hospitalized After Severe Reaction To Medicine Raw: Ferry Sinks Off South Korean Coast Toddler climbs into vending machine 8-year-old Boy Gets His Wish: Fly Like Iron Man Much-Anticipated 'Gone Girl' Trailer Finally Debuts! (VIDEO) Dog and Toddler Wear Matching Outfits in Adorable Photo Series VP Biden: "World witnesses ordinary citizens doing extraordinary things" It's Official! Michael Strahan Joins "GMA" Blood Moon Time-lapse Actress Lake Bell Goes Topless The Five Weirdest Local Taxes in America Applicants Vying for 'World's Toughest Job' Get Heartwarming Surprise Awkward: Crist catches Lt. Gov. insulting him on camera NASA Showcases Lunar Eclipse US Airways Tweets Graphic Photo of Nude Woman Behind the scenes of the Marathon anniversary photo shoot American Airlines Responds After Girl Tweets Alleged Terror Threat 'Joke' Charlie White's "Dancing" Mistake Olympic Great & Baltimore Native Michael Phelps Ends Retirement; Eyes Rio
Must Read