Mediation talks between Hostess Brands, BCTGM fail
Hostess Brands Inc., Irving, Texas, must return to a “liquidation scenario” after mediation with the Bakery, Confectionery, Tobacco and Grain Millers International Union (BCTGM) failed to prevent a shutdown that may eliminate more than 18,000 jobs, the judge overseeing the company’s bankruptcy said today.
Hostess Brands’ CEO Gregory Rayburn told U.S. Bankruptcy Judge Robert Drain that 15,000 Hostess workers will be fired today to allow them to start collecting unemployment benefits. The company is seeking Drain’s permission to close, so it can begin selling its assets.