NEW YORK CITY -- Yesterday’s last-ditch mediation between Hostess Brands Inc. and its striking bakery union failed to produce a deal to keep the troubled Twinkies maker afloat. Hostess said it will ask a bankruptcy judge today for permission to shut down permanently.
Judge Robert Drain, who oversaw yesterday’s (Nov. 21) mediation, is set to rule on Hostess Brands' motion to close the company at a hearing today in White Plains, NY. The hearing had been set for Monday, but was postponed after Drain asked the two sides to mediate in a final effort to save the 18,500 jobs at the company.
Hostess said it was forced to seek liquidation after the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, representing about 5,000 Hostess workers, went on strike Nov. 9., forcing it to shut down operations and putting an unbearable burden on the already struggling company. | SEE STORY
The 82-year-old maker of Twinkies, Ding Dongs and Ho Hos had previously said reaching a deal that could restart the company's nationwide network of 33 bakeries and 565 distribution centers, which have been shut down since Nov. 16, would be difficult due to the financial damage already caused by the strike.