IRVING, TEXAS — Hostess Brands Inc. announced today it will follow a request at the urging of Bankruptcy Judge Robert Drain of the Southern District of New York to enter a confidential mediation on Tuesday with the Bakery, Confectionary, Tobacco and Grain Millers Union (B.C.T.G.M.). Judge Drain said he preferred the mediation to a more expensive, public hearing regarding the company’s liquidation.
Today’s hearing to consider Hostess Brands’ motion to wind down the company and sell all of its assets has been adjourned until 11 a.m., E.S.T., on Wednesday, Nov. 21.
Production at all Hostess’ sites remains shut down.
Ken Hall, general secretary-treasurer of The Teamsters, called the decision to mediate “a positive step toward finding a solution that will keep 18,500 men and women employed at Hostess.”
“We are hopeful that the bakers’ union and the management team can find common ground during this mediation and avert liquidation,” Mr. Hall said. “It is in the best interest of all parties involved that we remember what is at stake — the future of 18,500 workers and their families. This is not only about a brand or a product, it is also about real people that just want to work hard every day to provide for their families.
He said the Teamsters will closely monitor the mediation between the B.C.T.G.M. and Hostess management and “assist in any way we can to help the two sides reach an agreement that keeps the company’s doors open.”