Are your Twinkies in trouble? Hostess threatens liquidation if strike continues past Thursday
Thu, 15 Nov 2012 01:50:28 GMT —
Hostess Brands Inc. announced
that it would "file a motion with the U.S. Bankruptcy Court on Friday to liquidate the entire Company if enough striking employees [did] not return to work by 5 p.m., EST, Thursday to enable the Company to resume normal operations."
On Friday members of the Bakery, Confectionery, Tobacco Workers and Grain Millers Union (BCTGM)
took the picket lines
, in Northwood and around the country, citing a disapproval of a recent contract offer that would reduce employee wages and cut benefits.
Union representative John Price told WNWO on Friday "You have people running the company now that are Wall Street investors and stuff like that. They're not actually people who run bakeries. They stopped paying into our pension fund when contractually they were supposed to be paying into people's pension fund."
In a statement by Hostess, the maker of Wonder Bread said â??we simply do not have the financial resources to survive an ongoing national strike.â??
Gregory F. Rayburn, the Companyâ??s Chairman and CEO, went on to say â??Therefore, if sufficient employees do not return to work by 5 p.m., EST, on Thursday to restore normal operations, we will be forced to immediately move to liquidate the entire Company, which will result in the loss of nearly 18,000 jobs. It is now up to Hostessâ?? BCTGM represented employees and Frank Hurt, their international president, to decide if they want to call off the strike and save this Company, or cause massive financial harm to thousands of employees and their families. â??
In January, Hostess filed for bankruptcy for the second time in less than three years.
The press release from the maker of Twinkies added that "Hostess has done everything in its power to pursue a reorganization of its business...including spending the better part of 18 months negotiating with its key constituents to obtain a consensual agreement. As previously disclosed, the Company has obtained the support of its largest union, the International Brotherhood of Teamsters, and its lenders. With the support of the BCTGM, Hostess believes it [can] successfully reorganize."
However, the company warned that if an agreement can not be made by their deadline the liquidation process will unfold as follows:
Hostess will file a motion with the U.S. Bankruptcy Court on Friday, November 16, 2012 requesting to wind-down the Company and sell all of its assets;
Hostess has requested a hearing on the motion for Monday, November 19, 2012;
If the motion is granted at this hearing, Hostess Brands will begin to close all of its operations as early as Tuesday, November 20. The closures will include the termination of all employees except small, temporary crews to clean, secure and prepare facilities and other assets for sale.
WNWO wants to know what you think. Will both sides be able to come to an agreement by the deadline? Do you think Hostess is bluffing to get the union to give in? You can sound off below or on our
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