INDIANAPOLIS - Mediation talks between Hostess Brands Inc. and its second largest union failed to resolve their differences, meaning the Irving, Texas-based company will liquidate.
The news came Tuesday, one day after the bankruptcy judge hearing the case said that the parties needed to go through the critical step of mediation.
Hostess moved to liquidate and sell off its assets in bankruptcy court citing a crippling strike last week.
A hearing was scheduled for Wednesday morning.
The case is being heard by the U.S. Bankruptcy Court in the Southern District of New York in White Plains, N.Y.
Hostess employed more than 850 workers in Indiana and more than 18,000 nationwide.