US baker Hostess Brands has indicated it will liquidate the company tomorrow (15 November) if striking employees fail to return to work this evening.
The group, which manufactures brands including Nature’s Pride and Wonder Bread, said it lacks the “financial resource” to survive an ongoing national strike.
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If “enough striking employees” fail to return to work by 5pm ET today the group will seek bankruptcy court approval to liquidate the entire business. The closure would result in the loss of nearly 18,000 jobs.
The Bakery, Confectionary, Tobacco Workers and Grain Millers Union – which represents 5,680 Hostess workers – launched a strike last Friday. The union is protesting against an 8% cut to pay, which is effective immediately, and further deep cuts to benefits the union said would reduce members earnings by around 30%.
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By GlobalData
