Court Approves Liquidation of Hostess
U.S. Bankruptcy Judge Robert Drain of the U.S. Bankruptcy Court in the District of Southern New York approved the liquidation of Hostess Brands after mediation between the company and the Bakery, Confectionery, Tobacco and Grain Millers Union failed, a Bloomberg article reported.
The shutdown of the company will follow with the liquidation of the Hostess’ assets. The result costs over 18,000 jobs. Fifteen thousand employees were laid off immediately, a Bloomberg article said. The rest will aid in the liquidation process. Going-out-of-business sales began at the company’s retail outlets.
The Bloomberg article reported that Perella Weinberg Partners’ Joshua Scherer said the liquidation could bring about $1 billion to the company. A hearing is slated for November 29 for final approval of the company’s liquidation plan.
To read the Bloomberg article in its entirety,
Previously on abfjournal.com: