Twinkie maker Hostess gets bankruptcy court judge approval to wind down business
Photo courtesy: Hostess
(Photo courtesy: http://hostesscakes.com)
Posted: 11/21/2012
Last Updated:
185 days ago
WHITE PLAINS, N.Y. - Hostess Brands Inc. will begin winding down its operations with approval granted by a bankruptcy court judge Wednesday.
The ruling came after the maker of Twinkies and Ding Dongs failed in last-ditch negotiations to end a strike by its second-largest union.
Hostess now has the green light to terminate the jobs of its 18,000 workers and sell off its brands.
The company has a bakery, which employed 167 people, on East 62 Avenue near Interstate 25 in Adams County. Most of the employees in that facility worked their final day last week.
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.
Copyright 2012 Scripps Media, Inc. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
PRINT
