Hostess gets OK to begin winding down business - 13abc.com Toledo (OH) News, Weather and Sports

Hostess gets OK to begin winding down business

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13abc.com Amy Montgomery - bio | email

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.

"It is difficult," Mark Popovich, a union member said.  "It gets difficult when you hear bad news.  We don't get much good news."
    
Hostess now has the green light to terminate the jobs of its 18,000 workers and sell off its brands.

"Is there a good time for a layoff? No!," Randy Moore, a union member said. "You take what you can and adjust, adapt, and overcome."


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.

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