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The Hostess Liquidation: A Curious Cast Of Characters...(Gephardt, other Demon-crats
Zero Hedge ^ | Tyler Durden

Posted on 11/16/2012 12:36:37 PM PST by Prospero

As the Twinkie Crumbles...

Tim Collins of Ripplewood, a prominent Democrat, a position which allowed him to get involved in the first bankruptcy process in the first place, due to his proximity with the Teamsters' long-term heartthrob Dick Gephardt (whose consulting group just happens to also be an equity owner of Hostess). In other words, the traditional republican-cum-PE scapegoating strategy here will be a tough one to pull off since the narrative collapses when considering that it was a Democrat who rescued the firm, only to see it implode in a trainwreck that has resulted in the liquidation of a legendary brand, and 18,500 layoffs.

(Excerpt) Read more at zerohedge.com ...


TOPICS: Business/Economy; Government
KEYWORDS: gephardt; hostess; union
An Inside Story of the demise of Hostess, and who benefits elsewhere, including Mexico...

"It's only crony Capitalism when Republicans do it."

1 posted on 11/16/2012 12:36:48 PM PST by Prospero
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To: Prospero
Photobucket
2 posted on 11/16/2012 12:38:02 PM PST by baddog 219
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To: Prospero
...money shot...

"Sadly, in many ways Hostess is now indicative of that just as insolvent larger corporation, the USA, whose insurmountable balance sheet liabilities will be the eventual catalyst for its collapse"

...proof positive...

...it's ALWAYS about the money...

...funny how different they act when...

...it's THEIR money huh?...

3 posted on 11/16/2012 12:44:43 PM PST by cyberaxe (....Uuuummpphhhh.....)
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To: Prospero
". . . the traditional republican-cum-PE scapegoating strategy here will be a tough one to pull off . . .

No, it won't. The Bain Capital narrative has already started and the Obama-fellating media will do nothing to correct it.

4 posted on 11/16/2012 12:45:50 PM PST by Arm_Bears (The MSM lies about liberals, and it lies about conservatives.)
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To: Prospero

The next four years are going to be a painful reminder by the real economy that Hope and Change are not respected by the rules of economics.

Gonna be a lot of unemployed and poorer people each and every day. This is going downhill until it isn’t, which is to say that the earliest we can have an upturn is when the Government changes hands at some level (2014).

Until then, businesses just have to keep chopping off their own limbs in order to survive.


5 posted on 11/16/2012 12:49:39 PM PST by Uncle Miltie (0BAMA CHOSE to watch a MUSLIM SNUFF FILM rather than a HEROIC AMERICAN RESCUE FILM)
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To: Prospero

Good Article - lines up all the cupcake cronies.


6 posted on 11/16/2012 12:53:10 PM PST by libertarian27 (Check my profile page for the FReeper Online Cookbook 2011)
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To: Prospero

Going to get my turkey tomorrow am and stock up if there hasn’t been a run on Twinkies already.


7 posted on 11/16/2012 12:55:44 PM PST by TexasCajun
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To: Prospero
...only to see it implode in a trainwreck

Hahahahahahahaha, now 4,000 union thugs will have no turkey or Christmas presents for their families. Hahahahahahahaha.
It is a shame though that 14,000 reg. workers will also suffer the same fate.

8 posted on 11/16/2012 1:00:04 PM PST by Mr Apple ( ignorant obama union voters---now you reap your just rewards)
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To: TexasCajun

Good luck with that. I’ve read that local stores are already showing bare shelves as of 10:00 this morning.

I also read that they are selling boxes of twinkies and ho hos on ebay for way more than they sold for at the stores.

I’m buying little debbie products.


9 posted on 11/16/2012 1:01:13 PM PST by History Repeats (sic transit gloria mundi)
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To: Prospero

This is an interesting expose’ of the union mentality. 5,000 union morons are costing 18,000 Hostess employees their jobs and millions of Americans the snack treats they love!!

Unionism is the collboration of mini-minds to create a single entity with a collective IQ of 9 . . . . . . . . . and that’s being generous!!!

And, THESE are the people that zero tacitly allows to run companies!!


10 posted on 11/16/2012 1:05:21 PM PST by DustyMoment (Congress - another name for white collar criminals!!)
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*


11 posted on 11/16/2012 1:21:23 PM PST by PMAS (All that is necessary for the triumph of evil is that good men do nothing)
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To: Prospero
the traditional republican-cum-PE scapegoating strategy here will be a tough one to pull off...

Media has never worried about facts in the past, don't expect them to start now!

12 posted on 11/16/2012 1:24:01 PM PST by Renkluaf
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To: baddog 219

When we were about 7 and 10, my brother and I would pick up empty pop bottles—we needed 8 of `em at 3 cents each—and then we would cash them in at this little store in Elk City and each buy a package of Hostess cupcakes, Twinkies or Snowballs @ 12 cents.
Then we would go shoot beer bottles behind a honkytonk on Route 66 with our Daisys. Way back when mammals lived in trees.

The Democrats’ girlfriend is Betty Crocker: She loves crumbs!
Nyuk nyuk nyuk


13 posted on 11/16/2012 1:32:07 PM PST by tumblindice (America's founding fathers: All armed conservatives.)
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To: TexasCajun

Dood, on my way to work this afternoon I stopped at two Food Lion stores and bought up what Hostess stuff they had left. I managed to get 2 boxes of Ho Ho’s, 2 boxes of Hostess Cupcakes, 2 boxes of Ding Dongs, and 5 boxes of Twinkies (3 of vanilla creme and 2 of chocolate-filled).

All that are left there are a few bags of “Sweet 16” donuts.

I’m going to stick them in the freezer and sell ‘em on EBay when some fat millionaire is jonesing for a Twinkie.


14 posted on 11/16/2012 2:02:06 PM PST by steerpike100
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To: Uncle Miltie

Indeed. I have moved in to a sector that should be the safest bet the next 4 years.

My only overhead is the operating expenses of my truck and my internet connection.

I stock less than 500 dollars worth of inventory (and that is a lot for my field) and I can get most anything I need from local suppliers.

I sell my time. It costs me nothing to get, and if it sits it does age. (some say I age well)

As long as the field I am in has reliable clients (medical, trash removal, all aspects of retail) I’ll weather the storm.

I suspect Hostess is just one of many union shops that will fold over the next 4 years.

I heard one Hostess driver say yesterday that the teamsters will be able to place half of them in new jobs.

The teamsters has that many open positions in other companies? Doubtful at best. I feel bad for the drivers. They accepted the pay cuts to keep hostess alive.

The greedy bakers union is to blame. (and the members that voted for the strike)


15 posted on 11/16/2012 2:03:47 PM PST by cableguymn (The founding fathers would be shooting by now..)
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To: History Repeats
I’ve read that local stores are already showing bare shelves as of 10:00 this morning.

When the union gave their decretal that they were going to strike, they cut off their own heads. Duh

16 posted on 11/16/2012 2:06:22 PM PST by Mr Apple ( ignorant obama union voters---now you reap your just rewards)
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To: steerpike100

I left work early to hit the Hostess outlet bakery near my home. The boss said it was OK to use vacation time to “go shopping”. I just didn’t say for what.
I get to the bakery at 3 PM. Line out the door. When I’m second in line to go in, a clerk locks the entrance. The woman in front of me opens the exit door. “Why’d you lock it? Too many people?”
“No, we have to close for restocking.”
“You still have stuff on the shelves.”
“The truck’s here. It might be the last. I was told to lock the door.” Stunned silence. The girl sees the line still waiting. She opened the exit door for someone and then said, “We’ll probably be open tomorrow at nine. Don’t know for how long.”
I was in line to get the last of the cheap Hostess cakes, and didn’t make it in.


17 posted on 11/16/2012 2:10:08 PM PST by tbw2
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To: Prospero

I’m going to miss the little three-pak 100 calorie packs of mini-cakes with the creme filling.


18 posted on 11/16/2012 2:24:33 PM PST by Tucker39
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To: tumblindice

Elk City, what state? I’ve had the pleasure of elk hunting in Idaho, and had a very enjoyable lunch of fried prawns in Elk City, ID.


19 posted on 11/16/2012 2:27:19 PM PST by Tucker39
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To: steerpike100
Your gonna make a killing!

But I have my doubts on how long they will be available! hehe

20 posted on 11/16/2012 2:40:09 PM PST by TexasCajun
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To: Prospero
Ripplewood is run by Tim Collins, 55, who's been at the center of other famed PE transactions. Known as a brilliant capitalist-philanthropist-networker, he's an eclectic character: a Democrat in an industry of Republicans; an Adirondack enthusiast dreaded by pheasant and fish; a board member at the Yale divinity and business schools; and someone who took a year at 31 to work at a refugee camp in the Sudan. Ripplewood orchestrated the $1.1 billion turnaround in 2000 of the Long-Term Credit Bank of Japan, which marked the first time that foreign interests controlled a Japanese bank. (Collins made the cover of Fortune Asia for it.) The bank was renamed Shinsei, and in 2004 it had a lucrative initial public stock offering. Far less fortunately, in 2007 Ripplewood acquired Reader's Digest -- and saw its $275 million investment vanish in Reader's Digest's bankruptcy filing in 2009. (Collins reportedly had visions of merging Reader's Digest with the magazine division of Time Warner (TWX), which owns Fortune.) Ripplewood's foray into Hostess was partly enabled by Collins's connections in the Democratic Party. He wanted to explore deals with union-involved companies and sought the help of former congressman Gephardt, who in 2005 founded the Gephardt Group, an Atlanta consulting firm that provides "labor advisory services." In his 2004 presidential bid, Gephardt -- whose father was a Teamsters milk truck driver -- was endorsed by 21 of the largest U.S. labor unions; in 2003, Collins was one of 19 "founding members" of Gephardt's New York State leadership committee. (Today, Ripplewood and Hostess are listed online as major clients of Gephardt's consulting group, which is also an equity owner of Hostess.) Back when Hostess was coming out of the first bankruptcy, Gephardt's credibility with both Ripplewood and the Teamsters gave them each a little more room to break bread. During this first bankruptcy, Hostess was almost sold. In 2007 it warded off a $580 million bid from its biggest competitor, Bimbo Bakeries USA. Bimbo Bakeries USA is part of Grupo Bimbo, the Mexican baking giant that owns such brands as Sara Lee, Entenmann's, Freihofer's, Arnold, Boboli, Ball Park Buns, and Thomas' English Muffins. Joining Bimbo in the bid were the union-friendly investment arm of supermarket titan Ron Burkle and the Teamsters themselves.

I guess I know who'll own HOSTESS soon!!! Bimbo!! (Because of the BIMBOS at the unions)

21 posted on 11/16/2012 2:45:15 PM PST by ExCTCitizen (More Republicans stayed home then the margin of victory of O's Win...)
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To: Prospero
Nationalize the Twinkie industry


22 posted on 11/16/2012 3:08:52 PM PST by Daffynition (Self-respect: the secure feeling that no one, as yet, is suspicious. ~ HLM)
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To: tumblindice

I remember the same thing. My little brother, me and my red wagon picking up pop bottles along the road and in the park. We would cash them in and reward our hard work with Hostess cupcakes, or banana flips and a cartoon of chocolate milk.... Ice cold of course.


23 posted on 11/17/2012 8:05:52 AM PST by baddog 219
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