Hostess may have to lay off 381 workers

WYOMING, Mich. (WOOD) - Hostess brand may have to lay off more than 380 workers statewide, according to letters sent to community leaders.

Hostess sent out the letters in compliance with the Worker Adjustment and Restraining Notification (WARN) Act to 17 Michigan communities -- including three in West Michigan.

WARN requires employers to provide 60 days notice in advance of mass layoffs. The notification must be sent to either union leaders or the appropriate state agency, as well as the local government.

Mayors, township supervisors and county commission chairs in Wyoming, Comstock Park and Kalamazoo received the letters saying employees of Hostess manufacturing facilities in those communities could be losing their jobs in the next 60 days.

The letters state that Hostess filed for Chapter 11 relief in bankruptcy court in January.

In the letters, the company informs community leaders that "our primary focus is to complete our restructuring and emerge from Chapter 11 as a viable company. However, it is possible that, despite our best efforts, certain events may occur that would require Hostess to sell all or portions of its business and/or wind down its operations and liquidate."

A total of 381 Michigan workers could lose their jobs.

If the layoffs go into effect, 44 workers in Wyoming, 17 in Kalamazoo and 5 in Comstock Park could be affected.

In compliance with WARN, the company said that one of six possible outcomes could happen:

• Hostess could sell all or a significant portion of its assets;
• Hostess could cease reorganization;
• More than 20% of the Hostess workforce could be laid off;
• Hostess could have an "unsatisfactory resolution" from the bankrupcty court regarding modifications to collective bargaining agreements;
• There could be a "strike, lockout, slowdown or other work stoppage" that would negatively affect the company;
• Hostess could seek approval to sell property while in bankruptcy, which "accounts for more than 20% of Hostess' consolidated net sales" reported for the 2011 fiscal year.

The state received its copy of the WARN letter from Hostess on May 7.

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For more information:

Comstock Park WARN letter (pdf)

Kalamazoo WARN letter (pdf)

Wyoming WARN letter (pdf)

State WARN website