Don’t start stealing and hoarding Twinkies just yet. Just because the brand of snack cakes is down, don’t count it out. Hostess Brands and the Bakery, Confectionery, Tobacco Workers, and Grain Millers International Union are headed back to the bargaining table. Bankruptcy Judge Robert Drain, who is overseeing the case at the US Bankruptcy Court in the Southern District of New York, noted that both sides have not gone through mediation and wants that changed before the case could proceed. Hostess now has 24-48 hours to save itself.
“Many people, myself included, have serious questions as to the logic behind this strike,” said Drain. “Not to have gone through that step leaves a huge question mark in this case.”
Hostess Brand . The Bakery, Confectionery, Tobacco Workers, and Grain Millers International Union represents about 30 percent of Hostess’ workforce. It costs Hostess $1 million a day to wind down production. Hostess was bringing in $2.5 billion per year in business, even with their recent downturn in business and skyrocketing employee benefit cost. Hostess has filed not one, but two Chapter 11 bankruptcy plans within the last 10 years.
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