In what The New York Times calls a "last-ditch effort to avoid winding down Hostess," the maker of Twinkies and Wonder Bread agreed to mediation with one of its biggest unions at the behest of a bankruptcy judge.
Hostess and the Bakery, Confectionery, Tobacco Workers and Grain Millers Union, which represents 5,600 workers, will sit down today to try to reach a labor agreement.
If the talks succeed, Hostess could avoid liquidation and save 18,500 jobs; if not, it’s likely Hostess will auction off its brands and the workers’ fates will be unknown, the piece notes.
Potential buyers are already waiting, the story adds. Flowers Foods said Monday it revised its bank lending agreements to allow it to borrow up to $700 million. A representative for Flowers didn’t return a call seeking comment.
Grupo Bimbo, which owns parts of Entenmann’s and other bakeries, made a $540 million bid during Hostess’ previous bankruptcy, but later withdrew the bid. Because of antitrust issues, Grupo Bimbo may be more likely to buy pieces, the story points out.