Daily News: November 20, 2012

Hostess Brands to Enter Mediation With Bakers Union

Hostess Brands Inc. announced that it will follow a request from the U.S. Bankruptcy Court for the Southern District of New York to enter a confidential mediation on Tuesday, November 20 with the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), which represents approximately 30% of the company’s workers.

The hearing to consider Hostess Brands’ motion to wind down the company and sell all of its assets was adjourned until 11 a.m., EST, on Wednesday, November 21, 2012, a company press release said.

According to court documents, U.S. Bankruptcy Judge Robert Drain said: “Many people, myself included, have serious questions as to the logic behind this strike. Not to have gone through that step leaves a huge question mark in this case.”

Production remains shut down.

A separate Washington Post article noted that the company’s CEO Gregory Rayburn said the company is under a lot of financial pressure to reach an agreement with the union, as it’s costing the company about $1 million a day in payroll costs.

Founded in 1930 and based in Irving, Texas, Hostess Brands’ products have included iconic brands such as Hostess, Wonder, Nature’s Pride, Dolly Madison, Drake’s, Butternut, Home Pride and Merita.

To read the Washington Post article in its entirety, click here.