Hostess gets OK to begin winding down business - WQOW TV: Eau Claire, WI NEWS18 News, Weather, and Sports

Hostess gets OK to begin winding down business

Posted:

WHITE PLAINS, N.Y. (WKOW) -- A New York state bankruptcy court judge approved a request by Hostess Brands Inc. to begin winding down its operations.

The ruling came Wednesday after the maker of Twinkies and Ding Dongs failed in final effort negotiations to end a strike by its second-largest union.

Hostess now has the green light to terminate jobs and sell off its brands, meaning 18,000 workers will now be out of a job.

In court Wednesday, 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. That's about how much they generate in annual sales.

Hostess, based in Irving, Texas, has been spending about $1 million a day in payroll without any income since it halted operations last week.

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WQOW. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service and Mobile Privacy Policy & Terms of Service.

Persons with disabilities who need assistance with issues relating to the content of this station's pubic inspection file should contact News Director Dan Schillinger at 715-852-5920. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, at 888-835-5322 (TTY) or at fccinfo@fcc.gov.