BUSINESS

Hostess Liquidation Wins Approval From Bankruptcy Judge [UPDATE] [CORRECTION]

FILE - This Tuesday, Jan. 10, 2012, file photo, shows, Hostess Twinkies in a studio in New York. Twinkie lovers, relax. The t
FILE - This Tuesday, Jan. 10, 2012, file photo, shows, Hostess Twinkies in a studio in New York. Twinkie lovers, relax. The tasty cream-filled golden spongecakes are likely to survive, even though their maker will be sold in bankruptcy court. Hostess Brands Inc., baker of Wonder Bread as well as Twinkies, Ding Dongs and Ho Ho's, will be in a New York bankruptcy courtroom Monday, Nov. 19, 2012 to start the process of selling itself. (AP Photo/Mark Lennihan, File)

Hostess's plan to wind down the company and sell off its assets has won interim approval from U.S. Bankruptcy Judge Robert Drain.

In a statement Hostess said that the wind-down means the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes, 570 bakery outlet stores and the loss of 18,500 jobs.

Hostess said it will keep about 3,200 workers to help with the liquidation, which would take one year.

The Associated Press reports that the sale of Hostess's brands could fetch up to $2.4 billion--about the same as the company generates in annual sales. Hostess, according to the AP, was spending $1 million per day to pay workers since ceasing operations last week.

CORRECTION: An earlier version of this story prematurely said that the judge ruled that liquidation would proceed.

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