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Bankruptcy Judge Orders Hostess Inc. and Union Into Mediation

(A Hostess Twinkie.  File photo by Tim Boyle/ Getty Images)

(A Hostess Twinkie. File photo by Tim Boyle/ Getty Images)

PHILADELPHIA (AP) — Twinkies won’t die that easily after all.

Hostess Brands Inc. and its second largest union will go into mediation to try and resolve their differences, meaning the Irving, Texas-based company won’t go out of business just yet.

The news came this afternoon after Hostess moved to liquidate and sell off its assets in bankruptcy court, citing a crippling strike last week (see previous story).

The bankruptcy judge hearing the case says that the parties haven’t gone through the critical step of mediation and asked the lawyer for the bakery’s union to ask his client, who wasn’t present, if he would agree to participate.

Hostess, which makes the iconic “Twinkies” snack food as well as Wonder Bread and other products, employs hundreds at its plant in Northeast Philadelphia.

The case is being heard by the US Bankruptcy Court in the Southern District of New York, in White Plains, NY.

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