Hostess gets OK to begin winding down business

Hostess gets OK to begin winding down business

Credit: Getty Images

SCHILLER PARK, IL - APRIL 20: Hostess Twinkies move through the packaging process at the Interstate Bakeries Corporation facility April 20, 2005 in Schiller Park, Illinois, a suburb northwest of Chicago. The Twinkie, an American icon and one of the nation's all-time favorite snack cakes, is celebrating its 75th anniversary this month. James A. Dewar created the beloved treat in 1930, while working as a Hostess bakery manager in Chicago. (Photo by Tim Boyle/Getty Images)

Print
Email
|

wwltv.com

Posted on November 21, 2012 at 4:39 PM

Associated Press

WHITE PLAINS, N.Y. — A bankruptcy court judge is approving a request by Hostess Brands Inc. to begin winding down its operations.

The ruling came Wednesday after the maker of Twinkies and Ding Dongs failed in last-ditch negotiations to end a strike by its second-largest union.

Hostess now has the green light to terminate the jobs of its 18,000 workers and sell off its brands.

In court Wednesday, Hostess said it needed to begin the liquidation process quickly to take advantage of outside interest in its brands, which a banker said could fetch up to $2.4 billion. That's about how much they generate in annual sales.

Hostess, based in Irving, Texas, has been spending about $1 million a day in payroll without any income since it halted operations last week.

 

Print
Email
|