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Hostess Still Headed for Liquidation as Bakers’ Union Mediation Fails

Hostess Brands Inc. again appears headed toward liquidation after mediation with the striking bakers’ union fails.

Hostess Brands Inc. has failed to resolve its dispute with the striking bakers’ union, sending the Twinkies and Wonder bread baker on a path toward liquidation.

A bankruptcy judge had ordered Hostess and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union to try mediation. They’re due back in court at 10 a.m. Wednesday for a hearing about Hostess’ liquidation motion.

The company said late Tuesday that the mediation was unsuccessful and that it wouldn’t comment further until the hearing.

Hostess, which formerly was based in Kansas City, filed for its second Chapter 11 bankruptcy in January. As of that time, it had about 100 corporate employees in the Kansas City area, plus roughly 200 at a Lenexa bakery. Overall, Hostess employs about 18,500.

The BCTGM represents about 5,300 Hostess employees. The International Brotherhood of Teamsters represents about 7,000. It had narrowly agreed to the labor changes the BCTGM was protesting.

The bankruptcy judge may rule from the bench about Hostess’ wind-down motion, Teamsters General Secretary-Treasurer Ken Hall said in a written statement released late Tuesday.

“As we said on Friday when the company announced it was closing, this is a tragic outcome and our thoughts and prayers go out to all Teamster Hostess members and all Hostess employees,” he said.

Members of the BCTGM have expressed hope that buyers will emerge to take on Hostess’ iconic brands and many employees.

Source: Kansas City Business Journal


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