Thursday, November 15, 2012
UPDATE #2 (11/19/12): there may be hope for the Twinkie yet. As I mentioned earlier, there was also the chance that Hostess and the union could reach an agreement after the company-imposed deadline. Reports have just come out that the parties, at the urging of the bankruptcy judge, have agreed to enter into mediation. We'll see if anything happens.
UPDATE: the deadline passed without an agreement, and Hostess has now moved to fully wind down operation. Of course, there could always be a last-minute deal that saves the company, but who knows. Even if the company liquidates, Twinkie fans may still have hope and the CEO discussed the sale of the brands. Stay tuned.
Hostess, which has been in Chapter 11 bankruptcy, is in the midst of a strike by employees who are members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union. The company reached an agreement with the Teamsters, which represent a larger portion of its employees. But the Bakery workers are upset about pay reductions and health and pension concessions sough by Hostess. The company set a deadline for 5pm today (about 10 minutes from now) for the strike to end. If it doesn't, the company says it will ask the bankruptcy court for permission to fully liquidate. I'm guessing that if the deadline passes, there may still be hope for a solution, but things are looking dire for Hostess. Better stock up on Twinkies now (unfortunately, rumors of their multi-year shelf life aren't true).