Tuesday, November 20, 2012

Mediation Fails: Hostess Will Shut Down and Liquidate Assets

So much for union compromise.

At USA Today, "Hostess mediation fails, so Twinkie company to liquidate":
Hostess announced Tuesday night that mediation with its bakers' union has failed and that the 82-year-old company will proceed with liquidation plans.

In an update on its talks with the striking Bakery, Confectionary, Tobacco and Grain Millers Union, the company behind Twinkies and Wonder Bread said it would have no further comment before a bankruptcy hearing scheduled for 11 a.m. ET Wednesday in White Plains, N.Y.

The union, which represents about 30% of the company's 18,500 workers, walked out Nov. 9. Hostess closed its 33 plants on Friday and sent workers home as it seeks court approval to wind down its iconic brands and sell its assets.

Bankruptcy Judge Robert Drain urged Hostess and the union to mediate. "Not to have gone through that step leaves a huge question mark in this case," he said Monday.
More at the link.