One of America’s most well known baked goods producers, Hostess, announced its plans to close a couple of weeks ago. Hostess failed to come to an agreement with its workers’ unions prompting the company to ask permission from the courts to liquidate its assets. Judge Robert Drain gave preliminary approval for the company to start selling assets such as its bakeries, brands and recipes.
Approximately 15,000 of the 18,500 employed by Hostess will likely be terminated in the coming days. Main operations for the company have been closed since Friday, November 16th. Investment bankers have said that possible buyers are inquiring various brands and facilities owned by Hostess. Hostess’ CEO said plans to sell off assets would move as quickly as possible. Judge Drain scheduled another hearing regarding a request for approval of bonuses for 19 executives to oversee the liquidation process, equaling $1.75 million.
To read more on this story visit: http://money.cnn.com/2012/11/21/news/companies/hostess-closing/index.html
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. at www.miamibankruptcy.com.
Tag: Liquidation
Hostess Forced to Close its Doors
After failing to reach a deal with the baker’s union, Hostess’ CEO Greg Rayburn said, ‘this is it’ for the baked goods company on Friday, November 16th, 2012. Rayburn reassured Today that this was not a ploy to initiate a negotiation. The company has already suspended operations at its plants and layed off most of the 18,500 workers the company employs. Hostess has asked the court for permission to liquidate its assets, which includes 33 bakeries and 565 distribution centers.
Hostess is most famous for baked goods such as Twinkies, Ding Dongs, Ho Ho’s, Sno Balls, Donettes and the country’s best-selling brand of white bread, Wonder Bread. The company plans to sell its famous brands as part of their liquidation and will continue to sell already-baked products for several more days. The company was forced to permanently close three plants last Monday as a result of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) strikes. Later in the week, Rayburn said that Hostess did not have the “financial resources to weather an extended nationwide strike.”
To read more on this story visit: http://www.nbcnews.com/business/hostess-maker-twinkies-ding-dongs-says-closing-business-1C7112898
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. at www.miamibankruptcy.com.