Hostess To Adress Liquidation Filing Today

Hostess To Adress Liquidation Filing Today

NBC 17 -ROCKY MOUNT, N.C. – Hard-hit Rocky Mount is facing another potential economic blow Thursday as Hostess Brands says it will liquidate the company unless enough workers stop striking by the end of the workday on Thursday to allow the company to resume normal operations.

The company said Thursday evening that it would not make an announcement about its motion filing in Bankruptcy Court until Friday morning.

Thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike Nov. 9 to protest cuts to wages and benefits under a new contract offer, which the union rejected in September. Union officials say the company stopped contributing to workers’ pensions last year.

Hostess has argued that workers must make concessions as it tries to improve its financial position. The privately-held food maker filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.

Hostess cited increasing pension and medical costs for employees as one of the drivers behind its latest filing.