Twinkie Manufacturer Faces Bankruptcy

Boxes of Twinkies are being auctioned for up to \$1,000 after the firm behind the iconic American snack said it is going out of business.

Hostess Brands is to lay off all of its 18,500 workers after a national strike crippled its operations.

Chief executive Gregory Rayburn said the company had "no alternative" but to wind down its operations. He added that all employees will eventually lose their jobs, "some sooner than others."

Within hours, people flocked to supermarkets to fill their shopping baskets with the cream-filled sponge cakes.

Boxes of the cakes later appeared for sale on websites such as eBay and Craigslist.

Greg Edmonds, 50, from Sherman, Texas, listed three boxes of the cakes for \$300 (£189).

"I could really use the extra money since I'm unemployed. I figure I better sell them pretty quickly because I am not sure how long this novelty is going to last."

The retail price for a box of 10 Twinkies is roughly \$5 (£3.10).

John Stansel, 40, from Tampa, Florida, spent about \$100 (£63) for 20 boxes of Twinkies, and plans to sell them on for \$1,000 (£630).

The keep-fit enthusiast said he would put the money to good use: "Maybe I will hire a personal trainer for myself or go do some shopping at Whole Foods or donate the money to a charity to fight diabetes.

"No matter what, I figure I am getting sugar off the streets."

However while Hostess is closing down, it is still possible that Twinkies could make a comeback.

The firm’s brands and other assets will be auctioned, and analysts believe a potential buyer could swoop.