Saturday, December 1, 2012
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