The Associated Press
Hostess Brands Inc. lived to die another day.
The maker of Twinkies and Ding Dongs said late Tuesday that it failed
to reach an agreement with and its second biggest union. As a result,
the company will continue with a hearing on Wednesday in which a
bankruptcy court judge will decide if the company can liquidate
The talks had come as a surprise after Hostess declared last week it
would move to wind down its business and start selling off its assets in
bankruptcy court. After making its case to liquidate on Monday,
however, the bankruptcy judge hearing the case noted the two sides
hadn't yet tried resolving their differences through private mediation.
The judge noted that 18,000 jobs were on the line and urged the company
and union to try to resolve their differences.
Hostess shut
down its three dozen plants late last week after it said a strike by the
union crippled its ability to maintain normal production. The Bakery,
Confectionery, Tobacco Workers and Grain Millers International Union,
which represents about 30 percent of the company's workers, says the
company's demise was the result of years of mismanagement, however, and
that workers have already given steep concessions over the years.
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