After a ray
hope shined for 18,000 employees, the hope to keep the doors open at Hostess
seems like it’s closing for good.
However, some of the brands will get a new life.
Hostess' bankruptcy mediation with the Bakery,
Confectionery, Tobacco Workers and Grain Millers International Union has broken
down, and the company plans to proceed with liquidation as planned, The Wall
Street Journal reports.
After Hostess announced on Friday that it was going out of
business, the two sides had agreed to work on resolving their
differences Monday. According to the Associated Press, about 18,500 jobs are at
stake.
Reuters reports that Hostess will not issue any further comment until a
Wednesday hearing before a U.S. bankruptcy court. The
company operates nearly three dozen bakeries and more than 550 distribution
centers across the country.
"Many people have worked incredibly long and hard to
keep this from happening, but now Hostess Brands has no other alternative than
to begin the process of winding down and preparing for the sale of our iconic
brands," CEO Gregory Rayburn said in a letter to employees posted
on the company website Friday.
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