A cashier rings up boxes of Hostess Twinkies and Cup Cakes at the Hostess Brands' bakery in Denver on Friday. The bankrupt company said Tuesday night that mediation talks with striking workers had failed and that liquidation would proceed Wednesday. (Photo: Brennan Linsley, AP)
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In an update on its talks with the striking Bakery, Confectionary, Tobacco and Grain Millers Union, the company behind Twinkies and Wonder Bread said it would have no further comment before a bankruptcy hearing scheduled for 11 a.m. ET Wednesday in White Plains, N.Y.
The union, which represents about 30% of the company's 18,500 workers, walked out Nov. 9. Hostess closed its 33 plants on Friday and sent workers home as it seeks court approval to wind down its iconic brands and sell its assets.
Bankruptcy Judge Robert Drain urged Hostess and the union to mediate. "Not to have gone through that step leaves a huge question mark in this case," he said Monday.
Here's how the Associated Press sums up Hostess' predicament:
Hostess, weighed down by debt, management turmoil, rising labor costs and the changing tastes of Americans, decided on Friday that it no longer could make it through a conventional Chapter 11 bankruptcy restructuring. Instead, the company, which is based in Irving, Texas, asked the court for permission to sell its assets and wind down its business.
Source: USA Today | Michael Winter