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Posts Tagged ‘unions’

Amid Controversy and Union Strike, Hostess Closes Plants and Plans to Liqudate Assets

Written by Bruce Feinstein, Esq. on . Posted in Bankruptcy Blog

How can a business effectively navigate a Chapter 11 bankruptcy when unions are involved?

After two bankruptcies and a series of failed talks with unions, Hostess Brands stopped production of its famous sweets and breads and will sell off its assets to the highest bidder. The American creator of classic junk food items such as the Twinkie, Sno Ball, and Ho Ho shut down its plants on Friday and plans to begin selling off its brands.

Hostess claims that all this occurred after labor contract talks fell through and union workers went on strike to protest proposed wage and benefit cuts. However, members of the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM) union tell a very different story.

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