Hostess bankruptcy affects Mid-Michigan distributors - ABC 12 – WJRT – Flint, MI

Hostess bankruptcy affects Mid-Michigan distributors

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(11/21/12) - The fallout from Hostess' bankruptcy is affecting Mid-Michigan distributors.

Several people are without income in wake the company's financial troubles.

This bakery warehouse at the corner of Pasadena and Clio in Flint's north side holds one of the biggest stockpiles of Hostess treats in Mid-Michigan.

Russell Soles and David and Christie Fick say they're among several local distributors that worked out of the building.

"We got a letter on Monday, stating we were no longer servicing our stores on Monday, for Friday and everything we had we already sold to stores and they took over our stores and took over our business," David said.

Last week, Hostess shut down its plants after failed mediation with its striking baker's union, and is now trying to move forward with liquidation - where the company's brands will be sold off in order to pay creditors.

Soles and the Ficks say that leaves distributors like them without an income.

"The poor Twinkie, well there's a lot of people out of jobs that's not getting talked about it," David said.

Without money coming in, they're now worried about how they'll continue to pay their franchise loan.

"We owned our routes, we all went out and got loans for our routes, we're paying back our loans. For them to come in and take a route they didn't own," Soles said.

"By liquidating, we're not going to see a dime of it. It all got thrown out, all contracts, all got thrown out in court," Fick said.

The distributors say they've tried several times to contact Hostess, but they haven't been able to reach anyone.

They've now hired an attorney, and in the meantime , are looking for employment.

"I'm trying to look at starting another business, but it's hard when that was your main income. All these people are losing their incomes, some people have filed bankruptcy, but we're trying not do that," David said.

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