Hostess Sends Closure Notices & Workers Layoff

Hostess Brands, Inc, the manufacturer of baked-good classics like Twinkies and Wonder Bread, has sent out letters warning its 18,000-plus workers that they may lose their jobs throughout the next two months. Based on Hostess, the notices are merely warnings, and not ensures, that the company will shut down. Hostess is appearing in compliance with the federal WARN Act, which requires corporations to notify employees 60 days earlier than closing a facility or conducting huge layoffs.
Hostess, a brand in the midst of Chapter eleven chapter reorganization and a contract negotiation with Teamsters and bakery staff unions, says it will work to regain its footing, however “sure occasions could occur that would require Hostess to promote all or parts of its enterprise and/or wind down its operations and liquidate.”

“The notices have been despatched to alert staff that a sale or wind down of the corporate is possible sooner or later,” mentioned spokesman Erick Halvorson in a statement. “Our objective continues to be to emerge from bankruptcy as a growing company. There are not any immediate actions being taken to promote or wind down the company.”

Particularly, Hostess warned that liquidation and layoffs would occur if the next situations occur:

• The board of directors authorizes, or seeks court authorization for, the pursuit of a sale of all or a substantial portion of all of Hostess' asset;
• The board of administrators authorizes, or seeks courtroom authorization for, Hostess to stop pursuing the restructuring of its business;
• More than 20 percent of Hostess' mixture workforce is laid off after Jan. eleven, 2012;
• Hostess receives an unsatisfactory resolution to it pending motion before the bankruptcy courtroom concerning certain modifications to its collective bargaining agreements with the Bakers and/or the Teamster;
• There's a strike, walkout, lockout, slowdown or other work stoppage that is likely to have a fabric antagonistic effect on Hostess; or
• Hostess seeks bankruptcy court approval to begin a sale of property while in bankruptcy which accounts for extra that 20 percent of Hostess' consolidated net sales as reported on Hostess' monetary statements for the 12-month period previous Jan. eleven, 2012."

This is Hostess Brands’ second bankruptcy submitting previously two years. Final month, Hostess requested the court docket to throw out all union contracts if its workers wouldn’t settle for its last price-cutting proposal offer.