Business

Hostess toasted; 18,500 out of work

Stick a fork in Hostess — the 82-year-old bakery can start liquidating and lining up buyers for its famous brands, including Twinkies, Wonder Bread and Devil Dogs, a judge ruled yesterday.

Bankruptcy Judge Robert Drain, one day after a mediation session between Hostess and its striking bakers union failed to reach a deal, approved an order signaling the end of the line for the money-losing company.

It also marks the end for 18,500 middle-class workers — although 3,000 will stay on the payroll to help mothball equipment.

The judge officially approved an order laying off the workers so that they can start collecting unemployment benefits.

A Hostess lawyer said it may choose leading bidders for several brands within a few weeks.

While this will raise money for Hostess’ creditors, new owners are unlikely to hire back many of the Hostess workers, and the jobs they offer may not be union positions.

That means most of Hostess’ workers will not be contributing to their already underfunded pensions.

That means the death of Hostess will affect more than just its employees. Former Stella D’Oro workers, whose members are part of the Hostess pension plan, may also feel the hit.

Former Stella union leader Mike Filippou said, “People are calling me for answers, but I don’t know much.”

He said about 70 of Stella’s 135 striking bakers are in line to get a pension.

The Bakery, Confectionery Union and Industry International Pension Fund in April reported it was in “critical status,” meaning it was less than 65 percent funded, and that the law allowed it to eliminate certain early retirement and disability benefits.

The bakery union did not return calls.