Bankruptcy judge clears Hostess to launch liquidation - News, Weather, Sports, Toledo, OH

Bankruptcy judge clears Hostess to launch liquidation

Workers went on a seven-day strike nationwide over a contract dispute. Hostess ended the strike by filing for liquidation. Workers went on a seven-day strike nationwide over a contract dispute. Hostess ended the strike by filing for liquidation.

(Toledo News Now) - On Wednesday, a U.S. bankruptcy judge cleared Hostess to launch its liquidation and shut down operations.

More than 18,000 people nationwide will lose their jobs, including more than 160 at the Northwood location. Hostess brands says it intends to retain approximately 3,200 employees to assist with the initial phase of the wind down. The number of employees is expected to decrease by 94 percent within the first 16 weeks. The entire process is expected to be completed within one year.

According to Hostess brands, the wind down means the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes, 570 bakery outlet stores and the loss of 18,500 jobs.

This comes after an unsuccessful mediation session Tuesday between the company and the union. A strike brought on by a contract dispute lasted about a week, but ended with Hostess filing for liquidation Friday.

Other companies are reportedly interested in buying some of Hostess' more popular brands.

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Tune in for live reports on WTOL 11 News starting at 5.

Copyright 2012 Toledo News Now. All rights reserved.

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