NEW YORK (MarketWatch) — Hostess Brands Inc. plans to return to bankruptcy court on Wednesday seeking approval to move ahead with liquidations plans that would throw 18,500 people out of work, after a latch-ditch mediation effort met with failure.
In what would be a bitter end for the maker of Twinkies and Wonder Bread, a federal bankruptcy court has scheduled a hearing for 11 a.m. Eastern in New York to consider the Irving, Texas, company’s motion to wind down operations.
Hostess failed to reach a contract agreement with the Bakery, Confectionery, Tobacco and Grain Millers Union, which represents 5,600 workers at the company.
In a brief statement late Tuesday, the company said mediation proved unsuccessful.
Bankruptcy Court Judge Robert Drain asked the two sides to meet Tuesday prevent a shutdown of the 82-year-old company.
Hostess said last week it plans to sell its brands and lay off its workers.