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.
All content © Copyright 2000 - 2014 WorldNow and WXOW. All Rights Reserved.
Persons with disabilities who need assistance with issues relating to the content of this station's public inspection file should contact Administrative Assistant Theresa Wopat at 507-895-9969. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, at 888-835-5322 (TTY) or at firstname.lastname@example.org.