Bankruptcy proceedings for Hostess Brands Inc. are on hold, with the company agreeing to enter into mediation with its second largest union following an initial hearing before Judge Robert Drain of the U.S. Bankruptcy Court in White Plains, N.Y.
Mediation proceedings are expected to commence Nov. 20 between Hostess and representatives of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, which has been on strike since Nov. 9.
The agreement by the two sides to enter into mediation came after Drain questioned the merits of the union strike at a Nov. 19 hearing, citing the lack of any mediation efforts between the union and Hostess prior to the strike being authorized.
Last week, Hostess requested permission from the court to liquidate and sell off its assets, attributing the company’s demise to a workers strike.
The 82-year old snack food company, based in Irving, Texas, employs nearly 18,000 workers, including about 200 in Connecticut at locations in Bridgeport, Cheshire, East Windsor, Norwich, and Uncasville.