Hostess filed for bankruptcy in 2012 and put many employees’ pensions across the country in jeopardy. Some of those employees work at one of Hostess’s bakeries in Illinois. Many of these bakeries around the nation are banding together to fight for their pension funds.
Read more from ChicagoBusiness.com:
Hostess, maker of Wonder Bread and Twinkies, was one of two employers contributing to the Bakery and Sales Drivers Local 33 Pension Fund. When Hostess went bankrupt, Ottenberg’s, a 140-year-old family operation near Baltimore, was left to foot the bill. President Ray Ottenberg didn’t respond to requests for comment.
Hostess had about $2 billion in liability to its multiemployer plans. Because of the bankruptcy, those pensions will get nothing from the company, said David Rush, chief financial officer of the Hostess estate, known as Old HB Inc.
“You have to repay your secured creditors first,” he said. “It was an unfortunate situation.” Continue reading…
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