Fate of Hostess Bakery Uncertain After Asset Sale
More than 300 workers used to be employed at the bakery.
The fate of Hostess’ former Wayne bakery remains uncertain after a bankruptcy judge approved the sale of Hostess’ cake and bread brands, Bloomberg.com reported.
The sale could net the famous snake-cake maker $100 million, which it would use to pay creditors, the website reported. The transaction is mainly for the acquisition of the company’s intellectual properties.
The fate of the Wayne bakery, which formerly employed about 320 workers, is unknown. Hostess still owns the bakery; it was not included in the transaction.
Hostess asked a federal bankruptcy court’s permission to close down in November a week after the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union went on strike.
Workers were warned they might lose their jobs last May.