McLean County's Unit Five school district is cutting ties with the company and finalizing details with a new bread vendor.
During a scheduled delivery on Friday, the district learned there would be no further deliveries this school year.
"They just told us that was it. And it is a shame because we had a good relationship with Hostess," said Unit Five Food Services Director Pat Powers.
After getting the news, the district turned to its frozen foods vender for help. It was able to provide bread for all students for the shortened holiday week.
But now the district is in the process of finalizing a longer-term deal with a company whose name is being withheld at this time.
That deal would be to provide bread through the rest of the school year.
Powers said the company previously bid on the district's bread contract, but lost to Hostess.
"The other company that bid, they're familiar with the school requirements and such so those are the details we're finalizing now to make sure we're set for the next week," she said.
Ultimately, Unit Five will have to draft a new three year contract to be put for bids.
Hostess' deal with the district was set to expire in 2013.