Twinkie

Hostess begins firings

22 Nov, 2012

CEO Gregory Rayburn said 15,000 workers would be fired the same day as the liquidation was approved so they could start receiving unemployment benefits. Hostess has been spending about $1 million a day for payroll since halting operations last week, down from $2 million a day, Rayburn said. Hostess said about 3,200 employees will stay on temporarily to clean plants and mothball equipment. Rayburn asked the bankruptcy judge to shield company officials from lawsuits over the firings.

Most of the wind-down will take place in the first three months. Quick asset sales may preserve some jobs. A prospective buyer visited a Drake’s cake factory Nov. 20 and asked whether its acquirer “could rehire employees who worked here.”

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