Company, BCTGM union will try to avoid liquidation.
Don’t count Hostess Brands out yet. And don’t start circling like buzzards over brands such as Twinkies and Wonder Bread. The company and its main union announced on Nov. 19 they seek mediation for the dispute that shut down the company and brought it to the brink of liquidation.
The company and the Bakery, Confectionary, Tobacco and Grain Millers Union (BCTGM) said they would follow a request from the U.S. Bankruptcy Court for the Southern District of New York to enter a confidential mediation. That union struck the company last week rather than accept cuts in a company reorganization plan. The strike caused the bankrupt company to shut down all operations and announce plans to liquidate.
In addition to selling off many iconic national brands, liquidation would mean the closing of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores throughout the U.S. And the idling of 18,500 employees.
See this timeline of events as reported on FoodProcessing.com:
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