As many residents of Baton Rouge are aware, Hostess has been known for many years for its sweet products, most notably its Twinkies. However, with the company being forced to dissolve and enter into negotiations for a sale of business, laying off over 18,000 workers in the process, it does not appear that a sweet ending is in sight for the company.
Hostess recently filed for bankruptcy and is slowly winding down its business-likely having to sell all of its assets in the process. One of the main reasons why the dissolution was necessary was because the mediation process between the company and one of the unions was unsuccessful. Now, there will be many business transactions and sales for the brands that Hostess owns, including Twinkies. The managing executives have asked to stay in place to ensure that the wind-down and transactions go as smoothly as possible.
The liquidation of a business is never an easy process. In this case, it could take up to a year or even longer for the entire process to be completed. Many times, complete liquidation can be avoided through successful mediation, but, as mentioned above, that was unsuccessful in this case. Whenever a business must be liquidated, sold or merged with another company, it is often best to seek out assistance to make sure that the process goes as efficiently as possible. This way, unnecessary litigation from government entities, former employees or any other parties can be avoided.
Business transactions of any type often have the chance of causing unseen ramifications unless everything is completely in order. The best way to be sure that everything is in order is to seek out assistance whenever possible.
Source: The New York Times, “Judge Gives Final Approval to Hostess’s Wind-Down Plan,” Michael J. De La Merced, Nov. 29, 2012