The union went on strike. The company opted to go out of business rather than to give into their demands. I do not know what the union's issues were but I would think, in today's jobless world, they would have been happy to have jobs and not complain so much. Unions were for the betterment of the workplace when they were started but now they are for greed and to make the officials rich.
Rumor has it the company, Hostess, will be bought out by a foreign company...so thanks to the unions, no more Twinkies and more jobs moved overseas.