Hostess appoints new CEO to lead it out of bankruptcy

By Caroline Scott-Thomas

- Last updated on GMT

Related tags: Hostess brands, Bankruptcy

Hostess appoints new CEO to lead it out of bankruptcy
Beleaguered Twinkies and Wonder Bread maker Hostess Brands has appointed Gregory Rayburn as CEO to lead it out of Chapter 11 bankruptcy, replacing Brian Driscoll, whose resignation was effective on Friday.

According to a company statement, Rayburn has 29 years’ experience working with troubled businesses and leading companies out of bankruptcy, including as chief restructuring officer (CRO) of WorldCom, in what was then the largest bankruptcy filing in US history. He joined Hostess Brands as CRO last month.

“Hostess has been in business for more than 80 years and has established a powerful and valuable brand,”​ Rayburn said. “I look forward to working closely with the management team and all of Hostess’s key constituents so that we can emerge from Chapter 11 as a company with a strong future that leverages its many strengths.”

Hostess filed for Chapter 11 bankruptcy in January to allow it to restructure, citing pension and medical benefit obligations, restrictive work rules, a continuing difficult economic climate, and a more difficult competitive landscape.

It said at that time that it would seek to reach an agreement with unions over labor agreements, as employee costs had squeezed the company, in addition to higher ingredient prices, and a more competitive US bakery sector.

Union response

Ken Hall, vice president of the Teamsters Union, which represents 7,500 Hostess workers, said that Rayburn’s appointment was “unexpected” but the union would continue to work toward a resolution.

“Obviously the situation with Hostess has been and remains extremely challenging, but as we have said before, we are committed to finding a comprehensive fix to the company’s challenges that works for our members,” ​ he said.

 “We have negotiations with Hostess and relevant stakeholders scheduled over the next two weeks to work toward that goal.”

Meanwhile, leaders of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) have blamed “ineffective executives” for the company’s problems. The BCTGM represents more than 5,000 workers at Hostess Brands, and claims it worked with Hostess for months prior to the bankruptcy filing to reach an agreement that would address the company’s financial difficulties.

Hostess Brands has about 19,000 employees and owes more than $1bn to creditors.

Related news

Show more

Related products

show more

Enhancing Bakery’s Appeal

Enhancing Bakery’s Appeal

Bunge Oils | 23-Sep-2019 | Technical / White Paper

Many of the attributes consumers love about bakery are determined by the type of fat bakers use. Some initial PHO substitutes did not fully meet sensory...

High Protein Snacks: Beyond the Protein Bar

High Protein Snacks: Beyond the Protein Bar

International Dehydrated Foods | 06-Mar-2019 | Technical / White Paper

As snacking becomes more of an ingrained part of the American diet, it will be increasingly important for snacks to deliver nutrition benefits, including...

Xanthan Gum in gluten-free bread

Xanthan Gum in gluten-free bread

Jungbunzlauer | 20-Sep-2018 | Technical / White Paper

Nowadays, gluten-free claims are no longer just attracting the attention of people suffering from coeliac disease. A growing number of health-conscious...

How does the jam get into a berlin doughnut?

How does the jam get into a berlin doughnut?

ViscoTec America Inc. – Dosing & Filling Systems | 22-Aug-2018 | Application Note

Different flavors and fillings make the hearts of those with a sweet tooth beat faster. The large bakeries face the challenge of meeting the high demand....

Related suppliers

Follow us


View more