WATCH: Law Professor Believes One Way or Another, Twinkies Will Stay on the Market
This afternoon on Studio B, Shepard Smith reported that Twinkies may not be going off the market after all. Hostess, its lenders and unions agreed to begin mediation talks Tuesday at the urging of a bankruptcy judge, who expressed deep concerns about the thousands of jobs that will be lost if the company goes to liquidation. The hearing on liquidation was scheduled for today after Hostess announced Friday that it planned to shut down, citing a stalemate with union workers.
Smith talked to University of Michigan law professor and bankruptcy expert John Pottow, who said that regardless of what happens with Hostess and its workers, Twinkies, Wonder Bread and other well known brands aren't going to disappear.
"If this is a game of 'bluff,' I think the [union's] bluff has now been called. And if they don't reach an agreement at this mediation tomorrow, which I hope they do, I think you're going to see this sold off to either another domestic or even an international baking company," said Pottow.
He explained that the name brand recognition of these Hostess products will be very attractive to other companies.