U.S. Bankruptcy Judge Robert Drain has approved the motion for Hostess to wind down the company, CNBC reports.Hostess and the Bakers Union had agreed to mediation yesterday, but talks fell apart, effectively killing the last hope for the company’s survival.
18,500 jobs were at stake, 5,000 of which belonged to the Bakers Union — the second-most represented union at Hostess behind the Teamsters.
Hostess will now lay off roughly 15,000 employees today as part of the wind down.
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