Hostess warns of liquidation, layoffs in light of bakery union strike

By Caroline Salls

Pittsburgh, Nov. 9 - Hostess Brands, Inc. said the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) has announced that some of its members at Hostess bakeries went on strike on Friday.

"A widespread strike will cause Hostess Brands to liquidate if we are unable to produce or deliver products," Hostess said in a news release.

"If that's the case, the company will move promptly to lay off most of its 18,300-member workforce and focus on selling its assets to the highest bidders.

"We urge our employees to remain on the job to rebuild the company.

"Sixty-four percent of our workforce is composed of non-union employees and employees represented by unions that ratified our proposals for modified collective bargaining agreements. We believe they have earned the right to rebuild Hostess.

"We know the concessions are tough, but it would make more sense for unhappy employees to simply leave the company voluntarily than to strike and cause the company to close down, forcing everyone to lose their jobs."

Hostess Brands is an Irving, Texas-based operator of regional bakeries. The company filed for bankruptcy on Jan. 11, 2012 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 12-22052.

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