Hostess To Keep Baking And Restructure
January 11, 2012 by UPI - United Press International, Inc.
IRVING, Texas, Jan. 11 (UPI) — U.S. baking giant Hostess Brands Inc. said it had secured funding to maintain operations while going through bankruptcy proceedings.
In court documents, the maker of Twinkies and Wonder Bread said it had $75 million in commitments from lenders to keep operating during its second restructuring in recent years, The Wall Street Journal reported Wednesday.
The company, which has headquarters in Irving, Texas, said its current operation “is not competitive, primarily due to legacy pension and medical benefit obligations and restrictive work rules.”
The company has contracts with 12 unions and is negotiating to reach new agreements. Of its 19,000 workers, 83 percent are union members, the Journal said.
Hostess said labor was the core issue.