Hostess Brands, the bankrupt producer of Twinkies and Wonder Bread, is seeking permission from the court to go out of business after failing to get wage and benefit cuts from thousands of its striking bakery workers, the Chicago Tribune reported.
A strike that began last week by members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union has reportedly gravely impacted Hostess’ ability to produce and deliver products at several facilities, according to Hostess.
On Friday, Irving, Texas-based Hostess, which has about $2.5 billion in sales from snack cakes and breads, received a court order for an expedited hearing on its request to liquidate assets, which is now set for 2 p.m. on Nov. 19 in bankruptcy court in White Plains, N.Y. Hostess has now suspended operations at all of its 33 plants across the U.S., and is looking to sell the brand and its infrastructure.
Hostess had given striking employees a deadline to return to work on Thursday, but the union refused to bend, blaming mismanagement for the company’s financial problems.
“We do not have the financial resources to weather an extended nationwide strike,” CEO Gregory Rayburn said in a statement. “Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”