Hostess Brands and the Bakery, Confectionery, Tobacco Workers and Grain Millers' International Union reached an agreement to mediate on Monday, according to CNBC. The agreement will prevent a Hostess liquidation keeping popular treats like Twinkies and Ring Dings alive.
Just three days ago the company announced they would be declaring bankruptcy because the two parties couldn't reach an agreement. The workers union held their ground and promptly let Hostess eat their own words forcing them to close. Over the weekend the company reportedly was able to work things out with the Bakers union, reaching an agreement both parties could be satisfied with.
The Union had been arguing with Hostess over a significant worker pay and pension cut and the snack brand claimed that if the Union didn't budge they would have to close the company down.
"Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands," CEO Gregory F. Rayburn said in the letter to employees posted on the company website on Friday.
The Texas based company had suspended all bakery operations for all factories before Friday and stated stores would remain open until all products had been sold. No stores will be closing now however, as workers will return to factories as early as this week.
Click here to see the original press release issued by the company announcing that they would be shutting down.
Three factory plants that closed last week will also now reopen after the news that both sides were able to work out an agreement. They had originally closed since production overall had been affected by the workers strike and they really "couldn't function" period without workers.
The news comes after Hostess was able to reach an agreement with the International Brotherhood of Teamsters a few days ago as well. With both agreements intact, people should expect to receive Hostess brand foods for a long time.
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