Not So Fast: Twinkies & Hostess May Not Be Dead After All
A New York judge has successfully urged Hostess, its lenders, and striking union leaders to enter private mediation, which effectively puts the death of Twinkies on hold.
Judge Robert Drain of the Southern District of New York advised the move, which is more cost effective than a public hearing regarding the liquidation of the company.
“My desire to do this is prompted primarily by the potential loss of over 18,000 jobs as well as my belief that there is a possibility to resolve this matter.”
Hostess Chief Executive Officer Gregory Rayburn told Reuters there is a chance Hostess could be saved.
“I think we have to see what unfolds. My impression is that the judge wants to understand the parties’ positions and some of their logic, but it doesn’t change our financial position.”
The death of Twinkies, Wonder Bread, Ho-Hos and other Hostess products was declared Friday when it failed to reach an agreement with the Bakery, Confectionery, Tobacco Workers and Grain Millers Internation Union.