Mediation Fails, Hostess Proceeding With Liquidation

(WIBW) - A last-ditch effort to save Hostess appears to have failed.

A statement from the company Tuesday evening said mediation with the Bakery, Confectionary, Tobacco and Grain Millers Union was unsuccessful. Hostess planned to return to bankruptcy court Wednesday and request to proceed with liquidating its assets.

The statement said the company will have no further comment until after the hearing, which is scheduled for 11 am Eastern Time before the U.S. Bankruptcy Court for the Southern District of New York.

The Wall Street Journal reported the union's head did not attend the Tuesday mediation session, citing travel difficulties to New York from his Columbus, Ohio location. The union's secretary-treasurer attended instead.

A federal judge ordered the mediation Monday, saying the company and union had not attempted the important step.

A Hostess closure puts more than 18,000 workers nationwide out of jobs, including 700 at its Emporia facility.

Bakers union members are upset the company was cutting wages and stopped payments to pension plans. Hostess also has workers with the Teamsters Union. They'd earlier accepted some concessions the company said was necessary to stay in business.

KVOE Radio in Emporia reports local and state leaders met Tuesday afternoon at Flint Hills Technical College. The meeting could lead to a schedule of Rapid Response meetings as well as a job and resource fair over the next four weeks.


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