Hostess/union mediation fails; next stop, liquidation?
Hostess Brands said Tuesday night that it failed to reach a deal in mediation with the Bakery, Confectionary, Tobacco and Grain Millers Union.
The bankrupt maker of Twinkies and Ding Dongs said it will have no further comment until a hearing scheduled for Wednesday at 11 a.m ET before the U.S. Bankruptcy Court for the Southern District of New York.
A union representative did not immediately respond to a request for comment.
The ailing company, which also makes Wonder Bread and Drake’s cakes, sought permission from bankruptcy court on Monday to liquidate its business, claiming that its operations were crippled by the bakers’ strike and that winding down was the best way to preserve its dwindling cash.