E-mail us: service@prospectnews.com Or call: 212 374 2800
Bank Loans - CLOs - Convertibles - Distressed Debt - Emerging Markets
Green Finance - High Yield - Investment Grade - Liability Management
Preferreds - Private Placements - Structured Products
 
Published on 11/21/2012 in the Prospect News Distressed Debt Daily.

Laid off Hostess workers eye payment of wages, benefits under WARN Act

By Caroline Salls

Pittsburgh, Nov. 21 - A group of former Hostess Brands, Inc. employees filed a class action lawsuit Wednesday in connection with the company's mass layoff, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York.

The former employees said more than 15,000 employees were immediately laid off on Nov. 21 or will be laid off within 30 days of that date as a result of Hostess' decision to liquidate the company and close down the majority of its operations.

According to the lawsuit, the employees were terminated without cause as part of the plant closings and layoffs and were not provided 60 days' advance written notice of their terminations as required by the Worker Adjustment and Retraining Notification Act (WARN Act).

As a result, the plaintiffs are looking to recover 60 days' wages and benefits. The employees said their claims are entitled to first-priority administration expense status or wage priority status.

Hostess Brands is an Irving, Texas-based operator of regional bakeries. The company filed for bankruptcy on Jan. 11, 2012. Its Chapter 11 case number is 12-22052.


© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.