I first learned of the Hostess bankruptcy after friends started mentioning their frenzied and unsuccessful attempts to buy Twinkies. This just shows that bankruptcy is a good viable option, even for businesses that seem untouchable. If you need to file for bankruptcy, contact a bankruptcy lawyer Utah can count on for bankruptcy help.
Hostess Brands Inc., filed a motion in U.S. Bankruptcy Court to close it operations on October 16. The company said the decision came after a workers’ union strike hurt its production ability.
This is not the first of Hostess’ financial troubles. In January of this year, Hostess filed for Chapter 11 bankruptcy, reorganization of its debts. And that was its second time through bankruptcy court in less than 10 years. Attorneys in Salt Lake City can help you understand the limitations if you or your business need to file for bankruptcy a second time.
Hostess warned employees it would file a motion in bankruptcy court to unwind the business and liquidate the assets if the Union workers did not return to work. Without the workers return, the company claimed it could not continue operations and return to normal production levels. If your business is also having difficulties meeting financial obligations, contact a bankruptcy lawyer Utah can trust with difficult bankruptcy issues.
Sadly, a closure will result in the closure of 33 factories and loss of about 18,500 jobs. Hostess was based in Irving, Texas, but also has a factory here in Ogden, Utah. Both the employees and the Hostess customers are disappointed in the news of the company’s closing. While the company is looking for buyers, there have been no formal announcements about any yet.
The bankruptcy judge noted that the company had not gone through private mediation, and the liquidation hearing is delayed to allow for that to happen. Attorneys in Salt Lake City can help you understand the ins and outs of your bankruptcy case and what formalities are required.