Hostess winds-down, pay out for execs

Posted at 8:34 PM, Nov 30, 2012
and last updated 2012-11-30 20:47:01-05

Senior executives at Hostess could see million dollar pay day as the company begins its wind-down plan.

Federal bankruptcy judge Robert D. Drain gave final approval to Hostess Brands’ plans to wind itself down and sell famous brands like Twinkies, Ho Hos, and Ding Dongs to help pay creditors.

Despite criticism, the approved plan also includes a pay out up to $1.8 million in bonuses to 19 senior executives.

Hostess Brand moved to close itself down after failing to reach an agreement with the union representing its bakery employees, who had gone on strike as a result of a new labor contract which lowered their pay.