A New York bankruptcy judge has ruled that Hostess Brands must return to a "liquidation scenario" after mediation efforts between the company and its bakers' union failed, according to Bloomberg News.
Meanwhile, Hostess has received a "flood of inquiries" from a range of parties interested in buying several of its brands, the snack cake maker's lawyer said today.
In a hearing in U.S. Bankruptcy Court in the Southern District of New York, the lawyer, Heather Lennox of Jones Day, said Hostess expects to find "stalking horse" bidders for some brands within a few weeks, with court-supervised auctions to follow. A stalking horse is a company selected to make the first bid for a bankrupt company's assets, with other contenders then getting a chance to top it.
The decision to liquidate leaves more than 200 employees at the Dolly Madison plant on National Road in Columbus with little hope a day before Thanksgiving.
Hostess said the sale of the company’s assets could take a year.
Picketers along the National Road plant are continuing their efforts for now.
See Thursday's Republic for more developments.
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