Hostess managers are planning to give management a 75 percent bonus of their annual salary, according to new reports, but face a challenge from the U.S. Justice Department.
Hostess Brans Inc. has applied for permission to make the massive payment to its management staff in an effort to ensure they do not leave as the company begins to wind down.
However, the company behind the Twinkie has been challenged on its generous offer by an agent for the U.S. Justice Department to see if the bankruptcy plan is too generous to its management.
According to the Chicago Tribune, a U.S. Trustee agent for the Justice Department has argued in court documents that Hostess' proposals are improper. The agent is requesting that an independent trustee be appointed to oversee the distribution of the company's assets.
The demise of Hostess has shocked Twinkie lovers over the past week as it announced that it was starting liquidation of the company's assets. New ownership is likely to go to the highest bidder.
The CEO of Hostess Brands, Gregory Rayburn has said in an interview with ABC News: "I think we'll find buyers. A few have surfaced already since Friday expressing interest in the brand to acquire them."