Since Hostess Brands announced it is going out of business and liquidating, an absolute consumer panic appears to have formed around one of the company's products, the Twinkie.
Consumers have hit supermarkets and convenience stores, stocking up on the high-calorie treat. Adults who haven't eaten a Twinkie in decades are bidding outrageous amounts on Ebay for cartons of Twinkies.
It's all a little much, especially when you consider that the Twinkie most likely isn't going anywhere. Within a few weeks it's likely someone else will be making the pastry.
“Hostess Brands will focus on selling its assets to the highest bidders,” said company CEO Gregory Rayburn on Friday.
Included in those assets are Hostess's 30 brands, which include the Twinkie. Even before the weekend hysteria over Twinkies it was likely another company would continue to make the snack. After all the publicity, it's almost guaranteed.
Going a little nuts
On Ebay Sunday, some people were frankly going a little nuts. Five boxes of 10 Twinkies had 12 bidders with a high bid of $117.50. That works out to $2.35 per Twinkie.
In an interview with CNBC Friday, Rayburn said he is hopeful Hostess will be able to sell all 30 of its brands and that its products, many of which have been around for decades, will continue to be produced.
That would include Twinkies, as well as Ding-Dongs, Ho Ho's and Wonder Bread. In short, they aren't expected to become collector's items. Besides, even with all the preservatives, there's a limit to how long even a Twinkie will last.
Hostess announced it was shutting down after its unionized Bakers rejected a pay cut and went on strike. Hostess, which was in the process of reorganizing under bankruptcy, said it was unable to continue operating in the face of the walkout by its bakers, who comprise about 30 percent of its employees.
The company's liquidation means the closing of 33 bakeries, 565 distribution centers and 570 bakery outlet stores, idling some 18,000 employees nationwide.