Billings Area News

Nov 14, 2012 10:22 PM by David Jay

Hostess announces possible liquidation, plan includes Sweetheart in Billings

BILLINGS - Hostess announces it will file a motion to liquidate the company, if striking employees do not return to work.


Sweetheart Bakery workers here in Billings say they would welcome Hostess selling the assets to another investor.

Hostess gave a deadline of 5 pm Thursday for the workers to return...or else it will file to liquidate in Federal Bankruptcy Court.

The union says if Hostess follows through, it will make it better for the workers.
The Bakery, Confectionery, Tobacco Workers and Grain Millers Union (BCTGM) Local 466 went on strike Saturday Night.

It's part of the a nationwide strike to force the company to liquidate, just as the company announced.

Local 466 business manager Eusebio Diaz says the company's last best and final offer was 26 percent to 33 percent less than what workers had been making.
"It's basically about the financial situation the company is in," Diaz said. "This is our second bankruptcy going around and we're continually going backwards. They just got too much debt amassed to go forward. So it's time for us to force the company to liquidate and get somebody else in here that knows how to run a company and go forward that knows how to run a business."

Hostess CEO Gregory F. Rayburn says "We simply do not have the financial resources to survive an ongoing national strike," Hostess CEO Gregory F. Rayburn said. "Therefore, if sufficient employees do not return to work by 5 p.m., EST, on Thursday to restore normal operations, we will be forced to immediately move to liquidate the entire Company, which will result in the loss of nearly 18,000 jobs. It is now up to Hostess' BCTGM represented employees and Frank Hurt, their international president, to decide if they want to call off the strike and save this Company, or cause massive financial harm to thousands of employees and their families."
Hostess announced on Monday it closed plants in Seattle, St. Louis and Cincinnati due to the BCTGM strike that started Saturday.
BCTGM said on Tuesday, it is not true that the the strike is the reason for the closures.
Hostess outlined the liquidation process. It will file it's motion on Friday. It has also asked for a hearing on Monday, November 19. If the motion is granted, Hostess Brands will begin closing all of its operations as early as Tuesday, November 20.
Sweetheart in Billings would not comment, but says it is still operating and baking bread.

»Comments

Most Popular

Top Videos

1 2 3 4