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Thirteen jobs at risk at Yuba City Hostess outlet
Thirteen Hostess workers in Yuba City have been warned they may lose their jobs if the baked goods manufacturer cannot emerge from bankruptcy.
The Yuba City workers are among all 19,000 employees nationwide who have received notices in accordance with the federal Worker Adjustment and Retraining Notification Act, which requires companies to notify workers 60 days in advance of a mass layoff.
Facing $860 million in debt, Hostess is fighting in New York bankruptcy court to cut costs by modifying its contracts with the labor unions that represent about 83 percent of employees.
The Yuba City location on Garden Highway sells discounted desserts, bread and other snacks. No one could be reached at the store for comment Tuesday.
Hostess spokesperson Erik Halvorson said in an email to the Appeal-Democrat that the May 4 notices were sent to alert employees that a sale or wind down of the company is possible in the future.
"However, our goal is still to emerge from bankruptcy as a growing company with a strong future. We are simply fulfilling our requirements by sending these notices," he wrote.
Hostess, the maker of Twinkies, Ho Hos and Wonder bread, got its start in Indianapolis in 1925 and is based in Irving, Texas. The privately held company employs 1,850 people in California, including 12 in Chico, about 275 in the Sacramento area and 12 in Woodland.
This is Hostess' second round seeking bankruptcy protection, after a first attempt in 2004 that resulted in a restructuring plan five years later.
CONTACT Ashley Gebb at email@example.com or 749-4783. Find her on Facebook at /ADagebb or on Twitter at @ADagebb.