Twinkies maker Hostess Brands says liquidation decision expected Friday

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Union members with Bakery, Confectionery, Tobacco Workers and Grain Millers International picketed Wednesday across the street from the Hostess-owned Dolly Madison bakery in Emporia, Kan.   MATTHEW FOWLER/ASSOCIATED PRESS
MATTHEW FOWLER/ASSOCIATED PRESS
Union members with Bakery, Confectionery, Tobacco Workers and Grain Millers International picketed Wednesday across the street from the Hostess-owned Dolly Madison bakery in Emporia, Kan.

NEW YORK — Hostess Brands Inc. said it likely won’t make an announcement until Friday 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 that 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. EST Thursday. That would result in the loss of about 18,000 jobs.

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

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

In an interview with Fox Business, Hostess CEO Greg­ory Rayburn said many workers have already crossed picket lines this week to go back to work despite warnings by union leadership that they’d be fined.

Hostess said it would file the motion to liquidate Friday if needed, with a hearing scheduled for Monday. If the motion is granted, Hostess would begin closing operations as early as Tuesday.

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justputtin
1495
Points
justputtin 11/16/12 - 05:26 am
3
0
Close it

If the employees hold the company hostage I say "close and sell". Anyone that has a job with Obama in office needs to be thankful or find another job that they can be happy with. It's very simple. Striking union workers? I hope they sell it.

PhiloPublius
386
Points
PhiloPublius 11/16/12 - 09:30 am
1
0
And they wonder why all of the jobs go to China

We have Labor laws, we don't need Unions anymore. they are killing our economy. Not to mention they are forced (Sometimes quite literally) to vote Liberal

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