WHITE PLAINS, NY - The U.S. producer of Hostess Brands baked goods told union workers earlier this week that a planned strike would likely force the company into liquidation, UPI.com reports.
"We would no longer have cash to keep operating. All Hostess Brands operations would shut down and liquidation would begin," the company said in a letter sent to employees Monday. "The 18,500 jobs, plus the health insurance that comes with it would be lost for good."
The company and union leaders have argued this week in a bankruptcy court whether the firm can toss out its union contracts. The union has pledged to strike if the court allows the company to eliminate its contract obligations.
This is the second appearance in bankruptcy court since 2004 for Hostess Brands. It previously emerged from bankruptcy in 2009.
Both management and unions have stalled in negotiating a compromise.
"We put an offer on table with $150 million in concessions. There is not a chance our members would accept (the firm's offer). They won't work for nothing," Teamsters Secretary-Treasurer Ken Hall said.