Hostess to proceed with liquidation after union talks fail

Hostess said that it failed to reach an agreement with its second-biggest union. As a result, the company will continue with a hearing on Wednesday in which a bankruptcy court judge will decide if the company can liquidate.

The talks had come as a surprise after Hostess declared last week it would move to wind down its business and start selling off its assets in bankruptcy court. After making its case to liquidate on Monday. However, the bankruptcy judge hearing the case noted the two sides hadn’t yet tried resolving their differences through private mediation. The judge noted that 18,000 jobs were on the line and urged the company and union to try to resolve their differences.