( Queensgate ) - Hostess Brands Inc announced Monday it's closing 3 factories including the Butternut Bread facility in Queensgate.
This comes after union workers have been striking in response to a lack of a labor contract. Hostess filed for Chapter 11 in January, and the most recent contract offer--which included lower wages and a drop in benefits--was rejected in September.
Queensgate workers found themselves locked out on Monday morning, and word that the plant was closing down got out by late afternoon.
Hostess CEO Gregory Rayburn issued a statement saying more than 600 jobs will be lost with the Queensgate closure along with factories in Seattle and St Louis. Rayburn says the striking workers are to blame even though they account for a fraction of the overall workforce. He also says the entire company could close, possibly in the next few days, if strikes continue. That would put more than 18,000 people out of work.