Bankruptcy Judge Tells Hostess to Mediate with the Union
By Amanda Brodhagen, Farms.com
Hostess Brands Inc. was ordered by a bankruptcy judge to go through the mediation process with one of its biggest unions. The judge noted that the parties hadn’t gone through the private mediation process and needed to do so in order to move forward.
Hostess, the maker of Twinkies and Wonder Bread is in mediation talks today to try and save 18,500 jobs. If the two sides don’t come to an agreement, Hostess will likely sell its brands, resulting in thousands of workers being without jobs. The liquidation hearing is scheduled to resume on Wednesday if an agreement isn’t reached.
The company’s announcement on Friday prompted many consumers to stock up on their favourite Hostess brands, with many stores reporting they sold out of Twinkies.