Hostess Union Mediation Process Fails, Bankruptcy Process Continues

Nov 21, 2012

Hostess Will Proceed With Bankruptcy Court [Nov. 21, 2012]

Hostess Brands Inc. released a statement late Tuesday that the mediation process with its second largest union had taken place but was “unsuccessful.” The company said that it will not provide further comment until after the bankruptcy hearing Wednesday Nov. 21 at 11am EST.

The mediation talks came after the company declared last week that it would begin to start selling off its assists in bankruptcy court. Despite the initial case to liquidate on Monday, the bankruptcy judge pushed the two sides to go through the mediation process, citing that this crucial step hadn’t taken place.

Now that the private mediation process proved to be unsuccessful, the fate of over 18,000 workers begins to look even grimmer. The company, which owns popular brands such as Twinkies and Wonder Bread, will more than likely continue with its plan to liquidate the business - pending the bankruptcy judges’ approval.

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