The Teamsters urged the smaller union to hold a secret ballot on whether members wanted to keep striking. Many workers in the bakers union decided to cross picket lines last week, but Hostess said it wasn't enough to keep operations at normal levels.
Teamsters General Secretary Ken Hall said the mediation talks' failure and the likely closing of the company was a “tragic outcome” for workers.
Rayburn said Hostess was operating on razor thin margins and that the strike was the final blow. The bakers union said the company gave executives steep raises last year as the company spiraled toward bankruptcy.
The company's announcement last week that it would move to liquidate prompted a rush on Hostess treats.
Even if Hostess goes out of business, its popular brands likely will find a second life. The company says potential buyers have expressed interest in the brands. The company still does about $2.5 billion in business each year. Twinkies brought in $68 million so far this year.