U.S. Bankruptcy Court Accepts Hostess Brands Inc’s Request to Shut Down

by Colonel on November 22, 2012

“New York Bankruptcy Judge Robert Drain approved the firm’s request for an orderly closure of its operations and the sale of its assets, the firm said in a communique.

The judge’s decision came after the firm and the union that staged the walkout were unable to reach agreement during a mediation session requested last Monday by the magistrate.

Hostess will now close 33 bakeries, 565 distribution centers and 570 outlet stores all over the country and will sell its most famous brands.

The company, based in Irving, Texas, had declared a suspension of payments to suppliers for the second time last January to try and restructure its operations with an eye toward reducing its huge debt. It also blamed its inability to return to profitability on union wages and pension costs.

” — Copyright 2012 Fox News Network LLC; Copyright 2012 EFE

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