In a statement Tuesday, Hostess Brands Inc. stated that mediation with its second largest union "was unsuccessful," which could mean liquidation is still possible.
Bakery, Confectionary, Tobacco and Grain Millers Union has been on strike since Nov. 9 after contract negotiations fell apart. During that time, union members were picketing at 24 of Hostess' 33 operating bakeries around the country.
On Friday, the company announced that they would be going out of businesses. Thousands of workers were told abruptly that they no longer had jobs.
Consumers also stampeded to stores as they tried to get their hands on what they thought would be the last box.
A federal bankruptcy judge ordered Hostess and its second largest union to go into mediation Monday afternoon. However, according to Hostess, those negotiations failed.
If the company does liquidate, it'll mean nearly 18,000 jobs lost nationwide. Hostess brands, which is privately held, filed for chapter 11 protection in January, the second time the company has filed in the last 10 years.
None of the operating bakeries are located in Connecticut, but as many as 200 people are employed distributing Hostess products in several retail sites, including ones in Uncasville, Norwich, East Windsor, Cheshire and Bridgeport.
The company had no further comment on Tuesday and representatives from the company are expected to appear in U.S. Bankruptcy Court for the Southern District of New York Wednesday morning.
Copyright 2012 WFSB (Meredith Corporation). All rights reserved.
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