Twinkies-maker Hostess Brands to hold mediation talks
November 20 , 2012
Twinkies-maker Hostess Brands has agreed to go to mediation with lenders and unions later today.
The company behind the popular American cream-filled sponge cakes was encouraged to hold more talks by a bankruptcy court, to which it was expected to apply for permission to liquidate itself.
Monday's hearing was seen as first step towards selling its well-known brands that also include Wonder Bread, Ding Dongs and Ho Hos.
However, the hearing was adjourned until Wednesday after the judge urged the parties to hold private talks to find a solution.
Last week, Hostess Brands blamed the need to liquidate on a nationwide strike by the Bakery, Confectionery, Tobacco Workers and Grain Millers Union (BCTGM).
The firm has been in trouble over recent years, emerging from bankruptcy protection in 2009 only to file again in January 2012.