by Christopher Freeburn | November 29, 2012 12:56 pm
While more than 18,000 Hostess Brands workers are losing their jobs as the company shuts down, its management team will be getting considerable compensation.
Nineteen top executives at the bankrupt firm will receive a total of as much as $1.8 million in bonuses. In filings with the bankruptcy court, Hostess said the payments were needed to keep the executives with the company as it shutters operations and sells its assets, the Associated Press noted.
The maker of Wonder Bread and Twinkies announced that it would cease operations earlier this month after its bakers union refused to end a strike that had crippled the company. The union rejected wage and benefit cuts imposed by the bankruptcy court.
It’s CEO Gregory Rayburn is currently earning $125,000 a month. The company expects its liquidation to take as long as a year.
Hostess said it is exploring the sale of various parts of the business and had already identified a large number of potential buyers for its iconic brands, which include Ding Dongs and Ho Hos. Bidding for the well-known brands is expected to be competitive and fetch significant prices.
The bakers union has requested that the bankruptcy court name an independent trustee to manage the company’s closure.
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