The New York Times Dealbook blog reports that the emergency mediation talks between Hostess Brands and its Bakery Workers Union have failed. Liquidation now appears inevitable.
Bankruptcy judge Robert Drain arranged the negotiations in a last ditch effort to save the troubled company, but to no avail:
“It’s over,” said David Durkee, secretary-treasurer of the Bakery, Confectionery, Tobacco Workers and Grain Millers Union.
Unlike the Teamsters, the union would not accept a concessionary contract and continues to blame management for the company’s problems.
In all likelihood, the court will now oversee the breakup of the company and the sale of individual pieces to interested competitors. There is considerable value in the Hostess collection of brands, but it is highly unlikely that steep job losses in the company’s 18,500 strong workforce can be avoided.
A sad Thanksgiving, indeed.
Photo credit: Larry D Moore via Wikipedia