The Pentagon may need to find another vendor to satisfy its sweet tooth.
Hostess Brands Inc., the bankrupt maker of Wonder Bread and Twinkies that has said it will fire more than 18,000 workers and liquidate after a strike crippled operations, has won about $169 million in U.S. government contracts since fiscal year 2000.
Almost 90 percent of that business was with the Pentagon.
In 2011, Hostess won about $15.4 million in federal awards, mainly with the Defense Commissary Agency, according to data compiled by Bloomberg. The amount marked a 34 percent decline from a peak of $23.2 million in 2006.
Chief Executive Officer Gregory F. Rayburn says Hostess will dismiss most of its 18,500 employees and focus on selling assets. Shipments of bread, snack cakes and other products will continue until supplies run out, he says.
The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike Nov. 9 after a bankruptcy judge in White Plains, New York, imposed contract concessions that 92 percent of the union’s workers rejected.