Mediation fails: Hostess moves forward with liquidation - KWWL - Eastern Iowa Breaking News, Weather, Closings

Mediation fails: Hostess moves forward with liquidation

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Hostess Brands has failed to reach an agreement with its second-largest union.

On Wednesday, the company announced plans to wind down its business and sell assets have been approved by a U.S. bankruptcy court.

A judge approved the motion after 11 hours of mediation Tuesday.

Hostess Brands said it intends to retain approximately 3,200 employees to assist with the initial phase of the wind-down.

Employment is expected to decrease by 94 percent at Hostess Brands within the first 16 weeks.

The entire process is expected to be completed within one year.

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