WHITE PLAINS, N.Y. (CBSNewYork/AP) — A bankruptcy court judge is approving 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 last-ditch negotiations to end a strike by its second-largest union.READ MORE: Robbery Suspect Accused Of Pushing Woman Using ATM In Queens, Withdrawing $1,000
Hostess now has the green light to terminate the jobs of its 18,000 workers and sell off its brands.
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.READ MORE: NYPD Searching For Suspect Accused Of Pistol-Whipping Man In Coney Island
Hostess, based in Irving, Texas, has been spending about $1 million a day in payroll without any income since it halted operations last week.
The news comes after a judge, on Monday, ordered the company to mediate with its union in one last effort to resolve their differences.
Are you surprised by the developments? Share your thoughts in the comments section…MORE NEWS: Police: Woman Threatened With Metal Rod During Brooklyn Robbery
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