Judge approves Twinkie liquidation

A U.S. bankruptcy judge approved Hostess’s plan to wind down the company. The liquidation comes after the Bakery, Confectionery, Tobacco and Grain Millers Union called a nationwide strike earlier in the month. Hostess said that the move by the labor union “crippled its operations at a time when [it] lacked the financial resources to survive a significant labor action.”

Hostess will close 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet store as part of the liquidation process. Eventually, 18,500 employees will lose their jobs, although the company will retain a workforce of 3,200 as part of the wind down process. In all, the liquidation process is expected to take about a year.