Mediation fails. Hostess may liquidate. Continue hoarding Twinkies and panicking.
November 21st, 2012
02:15 AM ET
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Hostess Brands said Tuesday evening that a last-ditch mediation session with its bakers' union over a new contract imposed in bankruptcy court had failed, bringing the company closer to liquidation.

Hostess said in a brief statement that the mediation session "was unsuccessful," and that it had no further comment ahead of a hearing scheduled for Wednesday morning in bankruptcy court, where it has requested permission to liquidate.

Jeff Freund, a lawyer for the bakers' union, declined to comment, citing mediation ground rules.

Last Friday, management announced a shutdown of Hostess. They appeared before U.S. Bankruptcy Judge Robert Drain on Monday afternoon seeking approval to liquidate and sell off the company's assets. But Drain said he wanted the parties to try one last time to reach agreement, serving as the mediator at Tuesday's session.

Drain said he was motivated by the prospect of saving the roughly 18,500 jobs at Hostess, maker of Twinkies and Wonder Bread.

Read - Hostess liquidation likely as mediation fails

Or just try making them at home.



soundoff (12 Responses)
  1. Truth

    The CEO got a $500,000 raise this year. They were not going broke!

    November 24, 2012 at 2:13 pm |
  2. Jeff

    Does the union not realize that it could negotiate a contract while working to keep the company afloat? Reach a temporary agreement to get the company running again while a long term contract is worked out to allow the company to stay open. Structure the new contract to save Hostess money in the short term by cutting pay and benefits, but build in a gradual pay increase to a point above the current level over the next 10 years. This will allow the company to reorganize and become profitable again. A process that will probably involve some downsizing and discontinuing of less profitable brands.

    November 21, 2012 at 1:41 pm |
  3. Truth™

    Now this is interesting...And always look for the union label...

    http://www.zerohedge.com/news/2012-11-20/hostess-mediation-fails-liquidation-proceed-furious-former-workers-now-turn-labor-un

    November 21, 2012 at 11:14 am |
  4. methomas

    From what I have read, Hostess is made up of multiple unions, all but one agreed to the contract. So 5000 cost 18000 their jobs. Such a shame!

    November 21, 2012 at 10:44 am |
    • DH

      And what is even more telling of all this is that the Teamsters Union were totally against the strike! The Teamsters! If THEY didn't think striking was a good idea that ought to tell you something.

      November 21, 2012 at 12:14 pm |
    • Truth

      the CEO got a $500,000 raise. They were not going broke.

      November 24, 2012 at 2:15 pm |
  5. DH

    HAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!!!! Hope you union lovers are happy. 18,000 out of a job. What a disgrace. For the greedy union members- screw you, for the unfortunate non union members- good luck. For those of you drinking the Kool Aid your socialist president is serving and buying his class warfare crap, you may be next. If you think capitalism and the free market are such bad things, see how the unemployment line treats you.

    November 21, 2012 at 9:27 am |
    • Jdizzle McHammerpants ♫♫

      Breaking news:

      Kool-Aid brand to liquidate.

      November 21, 2012 at 10:42 am |
      • Thomas Ulrich

        Whats a good democrat to drink then?

        November 22, 2012 at 1:01 am |
  6. Mr. Grinch

    Merry Christmas Bakers Union

    November 21, 2012 at 8:00 am |
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