UPDATE: Judge Orders Hostess To Mediate With Union

By: The Associated Press Email
By: The Associated Press Email

UPDATE: 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 Irving, Texas-based 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 says that the parties haven't gone through the critical step of mediation and asked the lawyer for the bakery's union to ask his client, who wasn't present, if he would agree to participate.

The case is being heard by the U.S. Bankruptcy Court in the Southern District of New York in White Plains, N.Y.

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Previous Story: Friday, November 16th

Hostess Brands says it is going out of business, closing plants that make Twinkies and Wonder Bread and laying off all of its 18,500 workers.

The Irving, Texas company says a nationwide worker strike crippled its ability to make and deliver its products at several locations.

Hostess had warned employees that it would file a motion in U.S. Bankruptcy Court to unwind its business and sell assets if plant operations didn't return to normal levels by Thursday evening.

The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.

Iowa's Waterloo-Cedar Falls Courier reports the decision affects 59 workers at the Waterloo plant and distribution center and about 30 truck drivers. The Waterloo bakery produced Wonder, Home Pride and Nature Pride breads.

Hostess spokesman Erik Halvorson said production ceased Friday morning in Waterloo. Local retail outlets will remain open for seven to 10 days.

At the Wonder Hostess Bakery Outlet in Waterloo, store manager Sherry Yearling said the remaining inventory of Twinkies was cleaned out within an hour.


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