Adjunct Law Prof Blog

Editor: Mitchell H. Rubinstein
New York Law School

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Saturday, December 1, 2012

Hostess Gets The Ok To Shutdown

A federal bankruptcy judge on Nov. 21 approved a bid by Hostess Brands Inc. to proceed with winding down its business and to alter key terms of labor contracts as it tries to sell off its assets (In re Hostess Brands Inc., Bankr. S.D.N.Y., No. 12-22052, order 11/21/12).

As my students all know,  under a Supreme Court case called Darlington, an employer has the right to go out of business, even if it is for anti-union reasons. 

When this occurs it is a no-win for anyone. However, I am sure that Hostess is going to sell its assets, including its trademarks for its brands for, pardon the pun, quite a lot of bread.

Mitchell H. Rubinstein

http://lawprofessors.typepad.com/adjunctprofs/2012/12/hostess-gets-the-ok-to-shutdown.html

Labor Law | Permalink

Comments

There will be cheap knockoffs of hostess products in no time.

Posted by: Personal Injury Attorney | Dec 2, 2012 12:34:01 PM

Anti-union reasons indeed.

Posted by: lawinsider | Dec 3, 2012 2:04:00 PM

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