Hostess Brands Inc, the bankrupt maker of Twinkies snack cakes and loaves of Wonder Bread, is seeking a U.S. court's permission to go out of business after failing to get wage and benefit cuts from thousands of its striking bakery workers.
The 82-year-old Hostess, which has about $2.5 billion in sales and is one of the largest wholesale bakers and distributors of breads and snack cakes in the United States, filed the request with the U.S. Bankruptcy Court in New York early Friday morning. A hearing on the matter is set for Monday.
The Irving, Texas-based company said the liquidation would mean that most of its 18,500 employees would lose their jobs. Hostess immediately suspended operations at all of its 33 plants across the United States as it moves to start selling assets.
"That rifle on the wall of the labourer's cottage or working class flat is the symbol of democracy.
It is our job to see that it stays there." - George Orwell
http://www.theatlantic.com/business/arc ... bs/265357/
Teamsters approved the pay cuts. It was the bakers union that held out. But there was a lot of mismanagement on the part of the executives as well. Shame a third of the workers sealed the deal but the way it looks it was only delaying the inevitable.
"The biggest problems that we’re facing right now have to do with George Bush trying to bring more and more power into the executive branch and not go through Congress at all."
Turdacious
