Hostess Warns Of Large-Scale Layoffs, Including Sacramento

SACRAMENTO (CBS13) - Hundreds of workers at Hostess stores across the state received some sour news as the bakery known for its sweets could be forced to scale back its operations.

The bakery sent out 1,700 layoff notices to employees at 69 of its California locations, including all 230 at the Arden Way location.

From cupcakes and muffins to Twinkies, white bread and Ho Ho's, Hostess products have been a staple in many pantries.

"My mom comes here," a customer at the Arden Way store said on Monday. "I've come here for years and they have great discounts."

"You go to the doggone store and pay $3 or $4 for a loaf of bread," Paula Banks Jennings. "Here you get five for $4.95."

But in January Hostess filed for bankruptcy for the second time in two years, blaming the economy and more competition.

A driver of five years says the white bread company gave out its version of pink slips.

"We still have people worried about it [bankruptcy], but right now hopefully things will be OK," Sam Autufuga said.

They got the layoff warnings a month ago in Sacramento and by July they may find out their store is no more.

Hostess tells CBS13 all 18,000 employees across the country got the warning.

"The notices were sent to alert employees that a sale or wind-down of the company is possible in the future," Hostess spokesman Erik Halvorson said in an email statement. "However, our goal is still to emerge from bankruptcy as a growing company with a strong future."

The layoff news wasn't well received by Banks Jennings.

"No, no, no," she said. "I think it's a horrible thing. You know how our economy is. Everybody needs a job."