The Twinkies
rollercoaster ride continues. Yesterday’s
story was that El Groupo Bimbo was set to by the company. But, today it’s a new tale.
Twinkies
won't die that easily after all.
Hostess
Brands Inc. and its second largest union will go into mediation to try and
resolve their differences, meaning the company won't go out of business just
yet. The news came Monday after Hostess moved to liquidate and sell off its
assets in bankruptcy court citing a crippling strike last week.
The
bankruptcy judge hearing the case said Monday that the parties haven't gone
through the critical step of mediation and asked the lawyer for the Bakery,
Confectionery, Tobacco Workers and Grain Millers International Union, which has
been on strike on Nov. 9, to ask his client, who wasn't present, if the union
would agree to participate. The judge noted that the bakery union went on
strike after rejecting the company's latest contract offer, even though it never
filed an objection to it.
"Many
people, myself included, have serious questions as to the logic behind this
strike," said Judge Robert Drain, who heard the case in the U.S.
Bankruptcy Court in the Southern District of New York in White Plains, N.Y.
"Not to have gone through that step leaves a huge question mark in this
case."
Hostess and
the union are expected to begin the mediation process on Tuesday.
Irving,
Texas-based Hostess, weighed down by debt, management turmoil, rising labor
costs and the changing tastes of America, decided on Friday that it no longer
could make it through a conventional Chapter 11 bankruptcy restructuring.
Instead, it's asked the court for permission to sell assets and go out of
business.
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