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Hostess, Union Talks Fail, Layoffs Moving Ahead

Company's Wayne bakery will be shut down and sold. More than 300 workers will lose their jobs.

A last-minute attempt to save the jobs of more than 18,000 Hostess employees, including more than 300 in Wayne, was held Tuesday following a mediation session with the 82-year-old company and a workers union.

CNN reported Tuesday that the last-ditch mediation session between Hostess and the Bakery, Confectionary, Tobacco, and Grain Millers Union to resolve a labor dispute “was unsuccessful.”

The sides met following a request from the U.S. Bankruptcy Court. The session interrupted the company’s hearing in court until 11 a.m. on Wednesday, the company announced on its website. The company had requested permission to liquidate its assets and holdings.

Production remains shut down at Hostess’ 33 bakeries. The 320 workers at the Wayne bakery will be out of a job effective July 3 and the facility will be sold.

Hostess will also sell its popular brands, including Drakes and Dolly Madison, which make iconic cake products such as Twinkies and Ding Dongs, to help pay creditors.

The company filed for Chapter 11 Bankruptcy protection in May.

— Have a question or news tip? Contact editor Daniel Hubbard at Daniel.Hubbard@patch.com or find us on Facebook and Twitter. For news straight to your inbox, sign up for our daily newsletter.

scottnfl22 November 21, 2012 at 11:56 AM
As a working man, I normally side with the workers and never the greedy owners. However, in this case, the owners aren't bluffing. There's no money. The workers would have been better of quitting and giving up there spot to one of the many unemployeed in this country who would have loved a job. So, congrates to the people who took down Hostess.
stewart resmer November 22, 2012 at 12:34 AM
Hostess liquidation OKd; 15,000 to lose jobs Hostess Brands Inc. will start selling off the rights to Twinkies, Ding Dongs and other baked brands after a bankruptcy judge's ruling. Hours of mediation between the company and union failed.
Pad November 22, 2012 at 02:24 AM
If there was no money how did the executives give themselves million dollar raises and increased their benefit packages? All but two of the former executives left the company each taking with them over 1 million dollars. we all know what the workers were asked to give up and what they gave up in the past. My question is what did the top brass at Hostess give up? I am sure they will be well compensated even after the bankruptcy. The workers are the fall guys here and the unions are also taking the hit. The truth will come out on this issue. The workers have given up alot in previous years to Hostess and they came back asking for more. Maybe it was just the straw that broke Hostess's back.
Donkey Tales November 22, 2012 at 04:43 AM
Gotta love unions!! Gimmee gimmee or we won't work!! We don't care if the company isn't profitable or can't even provide their goods to market, we want what we want!!! Stewie why don't you call your homeboy Obama and see if he will borrow the money from China to bail them out?
Pad November 22, 2012 at 12:03 PM
Then why did the executives continue to get raises and benefit increases? Top managers walked out with over a million in their pockets except for a couple who remained. The unions took pay cuts, made concessions several times over the past years. Also CEO's were running the company had no experiance at all in the food & baking industry and made a lot of poor decisions. They always blame the unions and the workers but when this is over we will see another side of this and it probably will be titled Corporate Greed Takes Down Hostess.
Pad November 23, 2012 at 04:34 AM
While they were cutting the bakers pay by 8% and benefits by 32% the CEO gave himself a 300% raise. During the second bankrupty nine Hostess executives increased their pay by 60% to over 100%. Wonder why this wasn't reported to the press. They also stopped paying into the employee's pension plan to which they already owed $160,000,000. And you wonder why the employee's are fed up. This is Corporate greed at its best. So let's blame it all on the twenty dollar an hour baker. What BS
Kevin Rooney November 25, 2012 at 07:02 PM
Execs agreed to cut their salaries to $1 per year until they were back on their feet. The company lost $341 million last year. All of the execs salaries together would not equal that. Concessions needed to be made and union would not budge. Now 18,000 workers out of a job at Christmas time due to the union.
Kevin Rooney November 25, 2012 at 07:11 PM
The CEO that did that was not Rayburn. That was the previous CEO. Rayburn made $100,000 per month. And he said that he and about 1/2 the other execs would cut their salaries to $1 per year. The company lost $341 million last year. I notice YOU did not mention that.
Pad December 03, 2012 at 01:55 AM
$100,000 per month. Pretty excessive if you ask me. Esp. with a failing company. Corporate Greed!

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