A mediation session today between Hostess Brands Inc. and the Bakery, Confectionery, Tobacco and Grain Millers Union failed to come to an agreement. As a result, the company will move forward with the liquidation process.
According to a USA Today report, Hostess announced this evening the mediation efforts ordered by a bankruptcy court judge yesterday failed. The next move for Hostess is liquidation and the company will be in a New York bankruptcy court tomorrow morning.
Hostess only gave a brief announcement on its website, noting no further statement will be given until Wednesday.
"Hostess Brands Inc. announced today that a mediation today with the Bakery, Confectionery, Tobacco and Grain Millers Union was unsuccessful. The Company will have no further comment until a hearing scheduled for tomorrow at 11 a.m., EST, before the U.S. Bankruptcy Court for the Southern District of New York."
BCTGM's website does not have any statement posted at this time.
As Hostess moved to finalize liquidation on Monday, Judge Robert Drain had ordered the two disputing parties to mediate.
"Not to have gone through that step leaves a huge question mark in this case," Judge Drain had said yesterday.
After 82-years it appears Hostess will close its doors and sell off its brands and other assets. Over 18,000 jobs are lost with this closure.
Over the weekend Hostess CEO Gregory Rayburn stated he felt that many of Hostess' brands would likely be purchased by other companies and that some interest had already been generated. The jobs, however, is a different story. Rayburn had indicated on Sunday that the company's assets were "more attractive" to buyers without union involvement.
Hostess' website states the company is now closed.