Hostess is currently owned by hedge funds Silver Point Capital and Monarch Alternative Capital.
“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” Gregory Rayburn, chief executive officer, said. “Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”
The nationwide strike began on Nov. 9, when the company cut workers’ wages by 8% and benefits by 27 to 32%. If the U.S. Bankruptcy Court grants the motion, the company will then begin to close all of its operations as early as Nov. 20, according to ABC news.
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