- November 26, 2012
- Posted by: Richard Feinberg
- Category: News
The Hostess bankruptcy saga has been a hot topic for the last few weeks. As talks of tough employee negotiations sparked controversy, the employees later went on strike forcing the company into tough decisions. As of last week, Hostess products have flown off the shelves as people anticipate the closing of the tasty cakes manufacturer forever. But, is it really the end for these sugary treats?
Another Day To Decide
Today is said to be the final day for Hostess Brands Inc. to make its final plea in bankruptcy court. Hoping to wind down their prior Chapter 11 case, the company is asking for help in closing out its now Chapter 7 liquidation proceeding.
The U.S. Trustee will be asking for permission to withdraw from overseeing the remainder of the case. Citing that Hostess has been planning improper bonuses to company insiders, the trustee is wanting an independent trustee to take over the management of asset sales of the company.
Despite having closed manufacturing operations in all 33 locations across the country, there are strong chances that the brands will be sold to market rivals. Although the case is an unfortunate end for current company employees, consumers are not likely to experience a permanent loss of their beloved confections.