Hostess Could Be Saved. Union and Hostess Agree to Mediation.
The Twinkie may have one last breath. It's too much of an American instution to go down quietly! Fox Business News is reporting that a US bankruptcy court judge has convinced Hostess and the bakery union to start mediation hearings on Tuesday. The company was supposed to be in court seeking permission to go liquidate their assets, but the US judge urged both parties back to the bargaining table. The negotiations will take place in private on Tuesday.
The jobs of about 18,500 workers lay in the balance...it's possible they could all be lost if mediation fails and Hostess liquidates. We're especially hoping this new development means good things for our friends at the Wareham Hostess store.
Hostess' CEO had already told CNBC on Friday that even if the striking workers returned immediately, it would already be "too late", but the US judge apparently feels there could be hope for a resolution. Hostess has sold more than 68 million dollars worth of Twinkies so far this year.