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After Mediation Fails, Hostess Again Asks Judge to Authorize Liquidation

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Hostess Brands Inc. made international headlines when, after negotiations with the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union failed again, they announced that Hostess was closing its doors and going out of business. Due to the fact that Hostess felt it could no longer meet the demands and requirements laid out in their Chapter 11 restructuring, they petitioned the court to simply liquidate all of their assets and dissolve the business. When the bankruptcy judge presiding over their case received their request, he responded by letting them know they missed a key step of going through mediation with the union. To comply with the judge's request, Hostess and union representatives went through mediation on November 20th. In the end, neither party was able to come to a mutually-beneficial agreement, so Hostess has now returned to again ask the judge to authorize the company's liquidation.

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