A bankruptcy court judge considering Hostess's request to liquidate asked the brand and the union that represents about 5,600 of its workers to enter mediation. The two parties have agreed to the mediation, which could help stave off the liquidation of the company. Hostess says that its labor costs are the reason it had to file for bankruptcy, and that without cuts they have to shut down. The judge said that he did not think that they had explored all their options, and that he was giving them another chance to work it out privately. The Teamsters, who represent another group of Hostess workers, agreed to concessions in September in return for concessions from the company. If the company liquidates, about 18,500 workers will lose their jobs.
See "At Judge's Urging, Hostess and Union agree to Mediation", Steven Greenhouse and Michael J. De La Merced, November 19, 2012