Hostess threatens to liquidate due to striking bakers
Hostess, maker of the cream-filled treat Twinkies, is threatening to shut its doors and liquidate the company if striking employees don’t return to work, reported Fox News.
Hostess filed for bankruptcy in January after the company failed to resolve wage and health care disputes with unions. While Hostess eventually struck a deal with the Teamsters, there is not yet a deal with the baker’s union, which is now on strike.
Hostess gave those on strike a 5 p.m. EST deadline to return to work, which has passed without either side relenting, reported the Wall Street Journal.
The AP reported that no official announcement is likely until Friday morning. If it makes good on its claim, Hostess will then ask a judge to allow the company to shut itself down for good and sell the assets, claiming it does “not have the financial resources to survive an ongoing national strike.”
If the judge grants the company’s request, Hostess could potentially begin shutting down by Tuesday.
[Image: Larry D. Moore via Wikimedia Commons]
Watch the video, via Fox News, below.