Hostess company executives have been working diligently in the Chapter 11 bankruptcy process to restructure and move forward from an overwhelming debt burden. Having placed considerable financial blame on union obligations, Hostess presented a final contract offer to employees back in August that was hoped to lower operating costs. Since then, labor strikes have ensued forcing the company into tough decisions.
The Hostess bankruptcy case has seen its share of ups and downs. Union representatives rejected the August proposal calling for labor concessions, leading employees to end up being ordered by a judge to enter a collective-bargaining agreement. Since then, employee protests at nearly all of its manufacturing locations has drawn clear battle lines.
After many days of labor strikes, Hostess made the decision to file a motion with federal bankruptcy courts Friday to close its operations after striking workers across the country crippled its ability to maintain production.