Hostess’s union requests Chapter 11 trustee supervise liquidation

Union claims “incumbent management” should not handle the company’s wind-down

Hostess may be liquidating, but that doesn’t mean squabbles with its union are over.

The snack company’s baker’s union asked the bankruptcy court on Tuesday to appoint a Chapter 11 trustee to oversee the liquidation. They objected to allowing “incumbent management” to handle it. Burn.

It makes sense, though, when you consider that the union has found fault with many of Hostess’s practices leading up to the liquidation, including the wage-cutting contract that Hostess imposed as a last-ditch effort to cut costs. That resulted in the union going on strike, which then pushed Hostess to liquidate.

Lawyers for Hostess responded to the request for a trustee by saying there were “serious legal deficiencies” in the motion.

The union asked Judge Robert Drain to rule on the issue at the next hearing on Thursday.

Read more at Thomson Reuters.

 

Follow Hostess’s downward spiral on InsideCounsel:

Court grants Hostess permission to liquidate

Hostess announces liquidation, the end of Twinkies

Hostess will seek to liquidate if striking workers don’t return to their jobs

Hostess imposes wage-cutting contract on workers to avoid going under

Hostess given permission to reject some union contracts

Number of “Chapter 22” filings jumps

Hostess files for bankruptcy … again

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