Twinkies and Ho Ho's may get another chance, so don't fall for the crazy eBay price-gouging.
Hostess Brands Inc., the makers of the spongy and cakey iconic treats, said today it will follow a request from the U.S. Bankruptcy Court for the Southern District of New York to enter a confidential mediation with one of its largest unions, the Bakery, Confectionary, Tobacco and Grain Millers Union tomorrow.
A hearing to consider Hostess' motion to wind down the company and sell all of its assets has been adjourned until 11 a.m. Wednesday, the company said on its website today.
On Friday, the Irving, Texas-based company said it was moving "promptly" to lay off most of its 18,500-member workforce, which includes nearly 300 workers at 13 Hostess facilities in 10 Massachusetts communities, and suspend bakery operations at all its plants.
Hostess' board of directors authorized the company wind down after the bakery union initiated a nationwide strike that crippled the company's ability to produce and deliver products at multiple facilities, officials said.
The union rejected a final offer from Hostess in September designed to lower costs so the company could attract new financing and emerge from Chapter 11 bankruptcy, officials said.
If negotiations are not reached, the wind-down will result in the closure of 33 bakeries, 565 distribution centers, nearly 5,500 delivery routes and 570 bakery outlet stores through the country. The company will also sell its popular brands, including Drakes, Dolly Madison and Wonder Bread.
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