As of last Tuesday, Hostess Brands Inc. and its second largest labor union were in mediation, looking to avoid a liquidation that would result in the closure of the brand through bankruptcy.
Hostess, who is responsible for Twinkies, Ding Dongs and Wonder Bread, attempted to file for Chapter 7 bankruptcy recently after it failed to reach a deal with striking bakers. Hostess officials have said that the strike, which began on November 9, has forced it into liquidation.
After Hostess’ bankruptcy filing, Judge Robert Drain of the US Bankruptcy Court in White Plains, New York, asked attorneys representing the company and the Baker, Confectionary, Tobacco Workers and Grain Millers’ International Union to participate in discussions to avoid liquidation.
If the two sides are unable to come up with a solution, the bankruptcy case could proceed, with Hostess selling off its brands, which are expected to command large sums of money.
Any individual who has unsecured debt may be facing the same difficult decisions as Hostess. Chapter 7 bankruptcy allows you to discharge unsecured debt, like credit card debt or medical bills, which often go unpaid when financial issues arise.
If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.