IRVING, TEXAS (ABC 4 News) - Hostess Brands Inc. announced today that it will file a motion with the U.S. Bankruptcy Court on Friday to liquidate the entire Company if enough striking employees do not return to work by Thursday.
The strikes were called on November 9 by the Bakery, Confectionery, Tobacco Workers and Grain Millers Union (BCTGM).
The strike stems from a fight over wage and benefit cuts as Hostess restructured from a recent bankruptcy. The bakers’ union condemned the cuts and also rejected the company’s restructuring plan.
The bakers’ union said on their website
, "If Hostess emerges from bankruptcy under its present plan, it will still have too much debt, too high costs and not enough access to cash to stay in business for the long term."
Gregory F. Rayburn, the Hostess' Chairman and CEO said the company cannot survive a strike and stated, "if sufficient employees do not return to work by 5 p.m., EST, on Thursday to restore normal operations, we will be forced to immediately move to liquidate the entire Company, which will result in the loss of nearly 18,000 jobs. It is now up to Hostess' BCTGM represented employees and Frank Hurt, their international president, to decide if they want to call off the strike and save this Company, or cause massive financial harm to thousands of employees and their families."
Hostess said that if employees do not return to work by the deadline, the liquidation timeline below will begin:
- Hostess will file a motion with the U.S. Bankruptcy Court on Friday, November 16, 2012 requesting to wind-down the Company and sell all of its assets;
- Hostess has requested a hearing on the motion for Monday, November 19, 2012;
- If the motion is granted at this hearing, Hostess Brands will begin to close all of its operations as early as Tuesday, November 20. The closures will include the termination of all employees except small, temporary crews to clean, secure and prepare facilities and other assets for sale.
This liquidation would result in a the closure of the Hostess plant in Ogden and result in the loss of 580 jobs locally and 17,780 nationwide.
Stay tuned to ABC 4 news and abc4.com for the latest developments.
-- Information provided by Hostess