Hostess Brands could liquidate if strike is not resolved

November 14, 2012 8:55:37 PM PST
Hostess is threatening to liquidate the company unless workers stop striking by the end of the work day Thursday.

Workers huddled in the cold outside the Schiller Park plant Wednesday night, unsure whether they will ever be back inside.

They are among the 1400 Illinois Hostess employees making Twinkies, Ho-Ho's and Wonder Bread.

That number could soon be zero if they fail to settle the week-long strike and allow the company to return to full operations, according to the company.

"We have a hearing scheduled for Monday to go before the judge," company spokesman Lance Ignon said. "If the judge were to approve that motion on Monday, then we will begin liquidation on Tuesday."

Union members overwhelmingly rejected the company's last contract proposal which they say would cut their pay and benefits by nearly a third.

In a statement union president Frank Hurt said, "Hostess Brands is making a mockery of the labor relations system that has been in place for nearly 100 years. Our members are not just striking for themselves but for all unionized workers across North America who are covered by collective bargaining agreements."

Hostess Brands has been in bankruptcy since January.