Twinkies maker Hostess wins court OK to close
Published on Nov 22, 2012 6:32 AM
NEW YORK (REUTERS) - Hostess Brands on Wednesday won permission from a United States (US) bankruptcy judge to begin shutting down, and expressed optimism it will find new homes for many of its iconic brands, which include Twinkies, Drake's cakes and Wonder Bread.
US Bankruptcy Judge Robert Drain in White Plains, New York authorised current management, led by restructuring specialist Gregory Rayburn, to immediately begin efforts to wind down the 82-year-old company, a process expected to take one year.
"It appears clear to me that the debtors have taken the right course in seeking to implement the wind-down plan as promptly as possible," Mr Drain said near the end of a four-hour hearing.
The judge authorised Hostess to begin the liquidation process one day after his last-ditch mediation effort between the Irving, Texas-based company and its striking bakers' union broke down.
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