Hostess Hopes Twink Out

ASSOCIATED PRESS
Posted: November 21, 2012

IRVING, TEX. - 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 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 Nov. 9 by the union, which represents 30 percent of Hostess workers.

After Hostes made its case to liquidate on Monday, the bankruptcy judge hearing the case noted that the two sides hadn't tried resolving their differences through private mediation. He 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 Tuesday.

In a statement late Tuesday, Hostess said that it would not comment on the breakdown in talks other than to say that mediation "was unsuccessful."

Hostess shut down its three dozen plants late last week after it said the strike by the bakers union hurt its ability to maintain normal production. The bakers union says the company's demise was the result of years of mismanagement.

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