NEW YORK — Time will likely run out for Hostess Brands on Wednesday, after a last-ditch mediation effort by a bankruptcy court judge failed to produce a deal between the company and its striking bakers' union.
Judge Robert Drain, who had essentially ordered the two sides to a mediation effort he himself oversaw, is set to rule on Hostess Brands' motion to wind down the company at a hearing in White Plains, N.Y. He adjourned a hearing on the motion Monday after saying he wanted to take one last shot at saving the 18,500 jobs at the company.
But Hostess, maker of such beloved products as Twinkies, Wonder Bread and Drake's snacks, announced Tuesday that the mediation efforts had failed to produce a deal to restart its operations that have been closed since Friday. Its CEO and attorneys had previously said reaching a deal that could restart the company's nationwide network of 33 bakeries and 565 distribution centers would be difficult due to the financial damage done by the strike that started Nov. 9.
To read the rest of the story, please go to: CNN
