Judge OKs Hostess Liquidation Plan

Expect Twinkies brand to be sold

By Newser Editors and Wire Services

Posted Nov 21, 2012 4:53 PM CST

(Newser) – A bankruptcy court judge today approved a request by Hostess Brands to begin winding down its operations. The ruling came after the maker of Twinkies and other snack cakes failed in last-ditch negotiations to end a strike by its second-largest union. Hostess now has the green light to terminate the jobs of its 18,000 workers without risking legal action, and to sell off its brands. In court, Hostess said it needed to begin the liquidation process quickly to take advantage of outside interest in its brands, which a banker said could fetch up to $2.4 billion.

"This is a once-in-a-lifetime opportunity to get iconic brands separate from their legacy operators," said a banker during the bankruptcy-court hearing in White Plains, New York. Click to read how one columnist thinks the villain in all this is the Teamsters union.

People wait in line to get into the Hostess Thrift Shop in Ogden, Utah on Friday.
People wait in line to get into the Hostess Thrift Shop in Ogden, Utah on Friday.   (AP Photo/Standard-Examiner, Kera Williams)
« Prev« Prev | Next »Next » Slideshow
My TakeCLICK BELOW TO VOTE
12%
17%
2%
44%
22%
4%
To report an error on this story, notify our editors.

NEWS FROM OUR PARTNERS
Other Sites We Like:   The Street   |   24/7 Wall St.   |   BuzzFeed   |   Cracked   |   World History Project   |   POPSUGAR Tech   |   Business Insider   |   HuffPost Entertainment