People Of WFIT
Wed November 21, 2012
Judge Approves Hostess' Plan To Liquidate
Maybe the end is nigh, after all.
A judge has approved Hostess' plan to liquidate the company, all but assuring that the maker of Twinkies, Ding Dongs, Donettes and Wonder Bread will cease to exist.
"Judge [Robert] Drain's motion spells the almost certain end of Hostess, an 82-year-old bakery that survived the Great Depression, numerous wars and countless low-carb diets. But the company, whose stable of sugary confections also include Ho Hos and Ding Dongs, struggled for more than a decade with the public's increasing fondness for lower-calorie, less-processed snacks.
"During a hearing that stretched for more than four hours, company executives and advisers espoused a simple message: expedited sales of the company's brands will raise the maximum amount of money possible. And letting Hostess begin shutting its doors for good sooner would be kinder to employees."
As we've told you last Friday, the company decided to call it quits saying they "simply do not have the financial resources to survive an ongoing national strike."
But, this week, a bankruptcy judge asked the company and its employees' union to give negotiations one more try. Those failed, so Judge Drain gave the go ahead for liquidation today.
The AP says Hostess is now free to fire its 18,000 workers and "take advantage of outside interest in its brands, which a banker said could fetch up to $2.4 billion."