Hostess Back On Track For Liquidation As Mediation Fails

On Monday, the Bankruptcy Judge handling the Hostess Brands bankruptcy urged the company and the Baker’s Union to attempt to mediate their dispute in what was clearly a last ditch effort to save the company from liquidation. Those talks appear to have failed, and the company will be in Court again today seeking to move forward with its liquidation plan:

NEW YORK (AP) — Hostess Brands Inc. lived to die another day.

The maker of Twinkies and Ding Dongs said late Tuesday that it failed to reach an agreement with its second-biggest union. As a result, Hostess plans to continue with a hearing on Wednesday in which a bankruptcy court judge in White Plains, N.Y., will decide if the company can shutter its operations.

The renewed talks between Hostess and The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union came after the company declared last week that it would move to wind down its business and start selling off its assets in bankruptcy court. The company cited a crippling strike that was started on Nov. 9 by the union, which represents 30 percent of Hostess workers.

After making its case to liquidate on Monday, the bankruptcy court judge noted that the two sides hadn’t yet tried resolving their differences through private mediation. The judge noted that 18,000 jobs were on the line and urged the company and union to try to resolve their differences. Both sides agreed to hold mediation proceedings on Tuesday.

In a statement late Tuesday, Hostess said it would not comment on the breakdown in talks other than to say that mediation “was unsuccessful.” A lawyer for the bakers union said he had no comment, citing mediation ground rules.

This will likely be the final straw, and the company will enter Chapter 7 liquidation today.

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Doug Mataconis
About Doug Mataconis
Doug Mataconis held a B.A. in Political Science from Rutgers University and J.D. from George Mason University School of Law. He joined the staff of OTB in May 2010 and contributed a staggering 16,483 posts before his retirement in January 2020. He passed far too young in July 2021.


  1. Whitfield says:

    Oh well. As long as Dunkin and Krispy Kreme are around, everything will be fine.

  2. Argon says:

    Twinkie funeral photo.

    No great loss. It will be reincarnated anyway.

  3. Geek, Esq. says:

    A good brand can’t save a bad company making a bad product.