Hostess gets OK to begin winding down business - WKOW 27: Madison, WI Breaking News, Weather and Sports

Hostess gets OK to begin winding down business

WHITE PLAINS, N.Y. (WKOW) -- A New York state bankruptcy court judge approved a request by Hostess Brands Inc. to begin winding down its operations.

The ruling came Wednesday after the maker of Twinkies and Ding Dongs failed in final effort negotiations to end a strike by its second-largest union.

Hostess now has the green light to terminate jobs and sell off its brands, meaning 18,000 workers will now be out of a job.

In court Wednesday, Hostess said it needed to begin the liquidation process quickly to take advantage of outside interest in its brands, which a banker said could fetch up to $2.4 billion. That's about how much they generate in annual sales.

Hostess, based in Irving, Texas, has been spending about $1 million a day in payroll without any income since it halted operations last week.

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