Hostess to proceed with liquidation

An eleventh-hour mediation effort failed to result in a deal between the company and the bakers union. A bankruptcy judge had suggested that both sides try to work out their differences through a mediator, but the problems faced by Hostess were just too great. So now the company will close down its operations and sell its assets. It means 18,000 people will be out of a job. From the WSJ:

Some financial and corporate buyers have signaled interest in Hostess assets, but it isn't clear if they would want to assume the company's current labor agreements. Hostess's chief executive has said its labor contracts have deterred would-be bidders. [Frank Hurt, president of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union,] has described Hostess's labor proposal, which called for an 8% pay cut in the first year and smaller cuts in subsequent years, as well as various pension modifications, as "outrageous" and said the bakers union would no longer "take any abuse" after previous givebacks.