by Nate Wooley | November 20, 2012 9:37 am
Just days after Hostess Brands announced that it was going out of business, the maker of Twinkies is entering mediation talks with the union to try to stay afloat.
A judge in New York, after hearing a request from the company to begin liquidation, has encouraged Hostess and the Bakery, Confectionery, Tobacco Workers & Grain Millers International Union to try using mediation to settle their differences, reports the Los Angeles Times. Both have agreed, and talks will begin Nov. 20.
The judge delayed talk of liquidation until Wednesday to allow the two sides to try to make some progress on Tuesday. If nothing occurs, then the process of shutting down Hostess will move forward.
Hostess has been troubled for some time. The company has gone through bankruptcy twice in the last 10 years and has had multiple CEOs during that time. Earlier, leadership said the firm couldn’t last through a strike, and when workers did walk out, they announced that they would begin shutting down. The closure would cost up to 18,000 jobs.
If the firm does closes, the question becomes who purchases the valuable Hostess name and products. Twinkies and Ding Dongs have value, even if Hostess itself can’t make them pay. Companies rumored to be interested in acquiring the brands include Kraft (NASDAQ:MDLZ) and Nestle (PINK:NSRGY).
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