Mediation Between Hostess, Union Fails

Published November 20, 2012

| FOXBusiness

Hostess Brands and one of its biggest unions failed to reach an agreement in private mediation Tuesday, the company told FOX Business. The move will likely pave the way for an ultimate liquidation.

A Hostess spokesperson said the company will have no further comment until a hearing at 11:00 a.m. ET Wednesday in U.S. Bankruptcy Court. 

Hostess, maker of Twinkies, Ding Dong’s, Ho Ho’s and Wonder Bread, announced last Friday it was going out of business amid a nationwide strike by its union employees. In a statement released Friday, Irving, Texas-based Hostess said it was shuttering 33 bakeries, 565 distribution centers, about 5,500 delivery routes and 570 bakery outlet stores in the U.S.

A statement from the Bakery, Confectionary, Tobacco and Grain Millers Union was not immediately available.

The bankruptcy case had been adjourned at the request of Judge Robert Drain in favor of the last-ditch mediation effort. However, with no agreement, Hostess is expected to proceed with a liquidation that could cost some 18,000 jobs. 

"This is a tragic outcome and our thoughts and prayers go out to all Teamster Hostess members and all Hostess employees," Teamsters General Secretary-Treasurer Ken Hall said in a statement. The Teamsters Union represents Hostess drivers. 

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