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Hostess says liquidation decision expected today

Published: 11/16/12 @ 12:00


Associated Press

NEW YORK

Hostess Brands Inc. said it likely wouldn’t make an announcement until this morning on whether it will move to liquidate its business after the company had set a Thursday deadline for striking employees to return to work.

The maker of Twinkies, Ding Dongs and Wonder Bread had warned employees it would file a motion in U.S. Bankruptcy Court to unwind its business and sell off assets if plant operations didn’t return to normal levels by 5 p.m. Thursday. That would result in the loss of about 18,000 jobs.

A spokesman for Hostess, Lance Ignon, said the company likely would make an announcement today after assessing plant operations Thursday evening.

Hostess, based in Irving, Texas, already has reached a contract agreement with its largest union, the International Brotherhood of Teamsters. But thousands of members in its second-biggest union went on strike late last week after rejecting in September a contract offer that cut wages and benefits. Officials for the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union say the company stopped contributing to workers’ pensions last year.

Hostess says that production at about a dozen of the company’s 33 plants has been seriously affected by the strike. Three plants were closed earlier this week.

A representative for the bakery-workers union did not respond to request for comment. The Teamsters meanwhile are urging the smaller union to hold a secret ballot on whether to continue striking. Citing its financial experts who had access to the company’s books, the Teamsters say that Hostess’ warning of liquidation is “not an empty threat or a negotiating tactic” but a certain outcome if workers continue striking.


Comments


Posted by tvukovich (anonymous) on November 16, 2012 at 1:54 p.m.

I hope the Union Brothers and Sisters can come to a agreement so they can work together with the Hostess people and come out with a good settlement for all at the table.Remember that the non- union worker has been told that the Union workers are the reason the companies are in a bad fiscal state. It isn't because of the Greed of the CEO's or the CFO's that the companies are in in a bad way, no it is the Union Worker's fault. Why is it the CEO's have a contract but when the workers want one in the way of Collective Bargaining Agreements that we,the workers shouldn't have one. Because we all know that the Companies will treat us Fairly, of course they will, when in the history of this Great Country has the employer EVER tried to screw over a worker. I know that a lot of the people think that the time for the Unions is over, but look around friends, Unions were here for one reason only and that is because of the GREED of Management. And we all know that Management isn't like that anymore. Yes they are DIFFERENT today. Some time not long from now your grandkids will ask you to tell them what a Pension WAS, is like a 401K, is it Papaw? Have a Great Day Brothers and Sisters.