Hostess Brands Inc., Irving, Texas, announced Monday, Nov. 19, that it will follow a request from the U.S. Bankruptcy Court for the Southern District of New York to enter a confidential mediation Tuesday, Nov. 20, with the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM).
“Today's development is a positive step toward finding a solution that will keep 18,500 men and women employed at Hostess,” Teamsters general secretary-treasurer Ken Hall said on Monday regarding the announcement. “We are hopeful that the bakers' union and the management team can find common ground during this mediation and avert liquidation.”
Monday’s hearing to consider Hostess Brands' motion to wind down the company and sell all of its assets was adjourned until 11 a.m. EST on Wednesday, Nov. 21.
Production remains shut down.
Source: PRNewswire, Hostess Brands Inc., International Brotherhood of Teamsters