- Last night, Hostess gave the striking union an ultimatum: Come back to work by 5 p.m. or we will liquidate the company.
- After the deadline came and went, Hostess remained silent until this morning when they announced they would begin to liquidate all holdings and assets.
- The company had been struggling in Chapter 11 bankruptcy for a while and were looking to restructure the company to attract investors before the union rejected their contract offers.
From the article:
IRVING, Texas, Nov. 16, 2012 — /PRNewswire/ -- Hostess Brands Inc. today announced that it is winding down operations and has filed a motion with the U.S. Bankruptcy Court seeking permission to close its business and sell its assets, including its iconic brands and facilities. Bakery operations have been suspended at all plants. Delivery of products will continue and Hostess Brands retail stores will remain open for several days in order to sell already-baked products.