Judge Robert Drain approved the motion after the company and the Bakery, Confectionary, Tobacco and Grain Millers Union (BCTGM) were unable to reach an agreement during an 11th-hour mediation.
Hostess Brands is winding down the company after a nationwide strike initiated by the BCTGM that commenced on 9 November crippled its operations at a time when the company lacked the financial resources to survive a significant labour action.
Hostess Brands said it intends to retain approximately 3,200 employees to assist with the initial phase of the wind down. Employee headcount is expected to decrease by 94% within the first 16 weeks of the wind down. The entire process is expected to be completed in one year.
Source: Hostess Brands
© FoodBev Media Ltd 2024