IRVING, Texas — Hostess Brands here said late Tuesday that a last-ditch effort to save the company through mediation with the Bakery, Confectionary, Tobacco and Grain Millers Union was unsuccessful and that it would again seek liquidation Wednesday morning.
As previously reported, Hostess, maker of Wonder Bread, Twinkies and other baked goods brands, said last week it would seek to liquidate in the wake of a nationwide strike by the union, but was asked by the Bankruptcy Court judge to take one more stab at mediation with the union. Hostess had been seeking to reorganize through Chapter 11 bankruptcy since January.
Read more: Hostess in Talks With Union
In an interview with Bloomberg Television, Gregory Rayburn, chief executive officer of Hostess Brands, said he did not think a buyer would emerge for the whole company, but said individual brands and bakery plants would likely be snapped up.
“I think we did everything we could, the lenders did everything they could, the Teamsters did everything they could, we just couldn’t convince the Bakers [Union],” he said.
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