Hostess Brands and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union will meet today to discuss the future of the Irving, Texas-based company.
Members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union employed at Hostess Brands locations across the country began to strike on Nov. 9. The Texas-based company says a widespread strike could cause it to liquidate.
Hostess Brands, which recently week won court approval to start new labor terms on its second-biggest union, filed a plan that would hand majority ownership of the baker to a group of its existing lenders led by Silver Point Finance, LLC. The lenders would get a 75% stake in a restructured Hostess, subject to dilution, while the unions would get the remaining 25% stake.
Hostess Brands’ CEO told a bankruptcy court that if the bakers union doesn't ultimately accept its final offer, it will rapidly shut operations down and start the process of selling all of its assets.
Members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) employed by Hostess Brands rejected the company's last/best/final proposal by 92%. Union members in every region of the country and every segment of the company's operations overwhelmingly opposed the proposal. Hostess seeks to impose bankruptcy-exit deal in court.
