Hostess Brands throws in the towel
The US Bankruptcy Court for the Southern District of New York finalized its approval for Hostess Brands to wind down operations and sell all assets.
The shut-down will be completed in one year and see closures of 33 bakeries, 565 distribution centers, around 5,500 delivery routes, 570 bakery outlet stores and 18,500 job losses.
The firm said it expects employee headcount to shrink 94% within the first 16 weeks. A 3,200-strong workforce will be kept to oversee and implement the initial phase of the wind down process, it said.
Analysts and industry observers are now considering who will come in for the assets.