10:33 a.m. | Updated While Twinkies have a reputation for an unlimited shelf life, the company that makes the junk food does not.

Hostess Brands, the bankrupt maker of cream-filled pastries like Twinkies and Ho Hos, said on Friday that it planned to wind down its operations. The decision comes a week after one of the company’s biggest unions went on strike to protest a labor contract.

Friday’s decision spells the end of Hostess, an 82-year-old company that has endured wars, countless diet fads and even an earlier Chapter 11 filing. But the liquidation may not mean the end of Twinkies, Ding Dongs and Wonder Bread. Such sweet treats could find new life under a different owner, once the company begins an auction of its brands and assets.

As the national appetite for the junk food waned, the baked-goods maker fell on hard times.

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• Documents: Hostess Brands press release

In January, Hostess Brands filed again for Chapter 11, just three years after emerging from the previous restructuring. The company originally hoped to reorganize its finances, principally by cutting labor costs.

But those plans were stymied by the recent labor dispute. The work stoppage by the Bakery, Confectionery, Tobacco Workers and Grain Millers Union affected nearly two-thirds of Hostess’s factories across the country. The company first responded by closing three factories, then gave union members until 5 p.m. on Thursday to return to work.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” Gregory F. Rayburn, Hostess’ chief executive, said in a statement.

Hostess’ advisers will soon begin to shut down the company’s 33 bakeries and 565 distribution centers. The vast majority of its 18,500 employees will be laid off, according to the company.

As part of the liquidation process, Hostess is also moving to sell off its iconic portfolio of treats. Such brands often find a second home after bankruptcy.

In 2009, Gordon Brothers Group and Hilco Consumer Capital other investors bought the assets of Polaroid, which pioneered instant photography. Last year, Polaroid struck a partnership with Lady Gaga, in an effort to revitalize the brand. Hilco also owns Linens ‘N Things, the home goods retailer that has been reinvented online.

Article source: http://dealbook.nytimes.com/2012/11/16/hostess-brands-says-it-will-liquidate/?partner=rss&emc=rss