Legal News

Mediation Collapses between Hostess and Bakers Union
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Reuters is reporting that Hostess Brands Inc is going to pursue going out of business after its last-minute discussions with one of its unions collapsed on Tuesday night. The union on strike is the bakers union and the two parties were forced into mediation by Judge Robert Drain, from New York Bankruptcy Court. The attempt was to prevent the company from going out of business, which would save 18,500 jobs in the process. Drain was the mediator for the talks.

Hostess is going to ask Drain to approve its plan for a piece-meal liquidation of the company, which is 82-years-old. Hostess claims that its daily operations were crippled by the strike of the bakers and that closing up shop is the best way to hold onto its cash, of which there is not much left.

  
What
Where


The bakers union that is on strike is the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union. The strike began on November 9. Hostess’ largest union, the Teamsters, accepted an eight percent cut in pay in order to help save the company. The general secretary of the Teamsters, Ken Hall, said the following in a statement:

“This is a tragic outcome and our thoughts and prayers go out to all Teamster Hostess members and all Hostess employees.”

According to reports, Mexico’s Grupo Bimbo and Flowers Foods are rumored to be in the running to purchase the company in part or in whole. Sun Capital Partners, a private equity firm, has also been rumored to have interest in Hostess along with Metropolous & Co.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




In the United States, Hostess operates 33 bakeries, 5,500 delivery routes, 553 distribution centers and 527 bakery outlet stores. Even though bakery operations ceased with the strike, deliveries were still occurring because of already-made products. Hostess blames pension costs and union wages for problems with its unprofitability. Gregory Rayburn, the Chief Executive of Hostess, said that the labor contracts have prevented possible bidders from entering discussions with Hostess.





 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Business Litigation Attorney

USA-CA-Santa Monica

Santa Monica office of our client seeks business litigation attorney with 1-3 years of experience. T...

Apply Now

Intellectual Property Litigation / Enforcement Associate Attorney

USA-CA-San Francisco

San Francisco office of our client seeks intellectual property litigation / enforcement associate at...

Apply Now

Corporate Attorney

USA-CA-Menlo Park

Menlo Park office of sophisticated boutique firm is seeking a corporate attorney with experience in ...

Apply Now

Mid-level Computer Science Patent Attorney

USA-CA-San Francisco

San Francisco office of our client seeks mid-level patent attorney with 3-5 years of intellectual pr...

Apply Now

RELEVANT JOBS

Search Docket Administrator

USA-IL-Evanston

Cardinal Intellectual Property is seeking an administrator to help perform a variety of tasks within...

Apply now

Associate - Mid-Level - GL Group

USA-NY-Valhalla

Defense firm seeking mid-level associate for Westchester office to fill General Liability position. ...

Apply now

Hotline & Training Managing Attorney (IMMIGRATION)

USA-NY-New York City

The Hotline & Training Services Managing Attorney will guide, develop, and supervise the Hotline sta...

Apply now

Litigation paralegal

USA-TX-Dallas

We are looking to immediately hire a responsible, highly organized, self-motivated litigation parale...

Apply now

SEARCH IN ARCHIVE

To Top