Hostess Judge Revives ‘Liquidation Scenario’ After Talks

Hostess Brands Inc. must consider a “liquidation scenario” after mediation with its bakers’ union failed to avert a shutdown that may eliminate more than 18,000 jobs, the judge overseeing the Twinkie maker’s bankruptcy said.

Chief Executive Officer Gregory Rayburn told U.S. Bankruptcy Judge Robert Drain that 15,000 Hostess workers will be fired today to allow them to start collecting unemployment benefits. The company is seeking Drain’s permission to close so it can begin asset sales that a financial adviser estimated may yield about $1 billion.