Hostess Brands

Judge Tells Hostess it Must Try Mediation

The company's closure has been forestalled.

Hostess Brands to Shutter Company in Wake of Strike, Bankruptcy

A federal bankruptcy judge has erected an obstacle to Hostess Brands’ closure, telling the company that it must attempt mediation with its striking workers before going ahead with plans to shutter the company and sell off its assets. But with management and workers so far apart on compensation, benefits and pension issues, mediation seems unlikely to succeed. The judge suggested that neither side had exhausted all options in an effort to avoid liquidation. If Hostess and its workers cannot resolve their differences, buyers like Flowers Foods and Grupo Bimbo have already been linked to purchase rumors.

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