Sunday, 26 April 2015
Last updated 1 day ago
Nov 21 2012 | 11:01am ET
Hostess Brands' hedge fund and private equity owners will seek permission to shut the company down after failing to strike a deal with a striking union yesterday.
Hostess, which filed for bankruptcy on Friday, first asked for approval to lay off its more than 18,000 employees and liquidate on Monday, but U.S. Bankruptcy Judge Robert Drain pushed for a last-ditch mediation session yesterday, with himself as mediator. But Hostess, which is owned by private equity firm Ripplewood Holdings and features hedge funds Monarch Alternative Capital and Silver Lake Partners as lead creditors, said the session was "unsuccessful."
Hostess, which makes the iconic Twinkie and dozens of other products, including Wonder Bread, blamed the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union for the decision to liquidate, arguing that it was crippled by the strike, called earlier this month. The union imposed the work-stoppage after it refused to accept Hostess' "last-and-best" contract offer.
With Drain's approval, Hostess can begin to sell itself, either whole or in pieces. The company may well wind up with another private equity owner; several firms, including Metropoulos & Co. and Sun Capital Partners, are reportedly interested.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…