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Hostess says it has over 100 interested buyers
CBS News / The Associated Press ^ | November 29, 2012

Posted on 11/29/2012 8:18:43 PM PST by 2ndDivisionVet

New York - Hostess Brands got final approval for its wind-down plans in bankruptcy court Thursday, setting the stage for its roster of snack cakes to find a second life with new owners - even as 18,000 jobs will be wiped out.

The company said in court that it's in talks with 110 potential buyers for its iconic brands, which also include Ding Dongs and Ho Hos. The suitors include at least five national retailers, such as supermarkets, according to a financial adviser for the company. The process has been "so fast and furious," Hostess hasn't been able to make the calls seeking buyers it previously intended, said Joshua Scherer of Perella Weinberg Partners...

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


TOPICS: Business/Economy; Food
KEYWORDS: economy; food; hostess; layoff; layoffs; twinkies; unemployment

1 posted on 11/29/2012 8:18:52 PM PST by 2ndDivisionVet
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To: 2ndDivisionVet

Twinkies, hecho in Mexico...


2 posted on 11/29/2012 8:23:08 PM PST by Hotlanta Mike ("God only knows it's not what we would choose to do." - Lyric from Us and Them - Pink Floyd)
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To: 2ndDivisionVet

I wonder if those union workers are having any second thoughts? They’ll probably coast on UE for 2 years but what will that do for their employment opportunities in the future?


3 posted on 11/29/2012 8:23:45 PM PST by BipolarBob (Never lick a gift horse in the mouth.)
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To: 2ndDivisionVet

I hope they make a ton of money and stick it to the union!


4 posted on 11/29/2012 8:23:55 PM PST by BOOHA
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To: 2ndDivisionVet

I will go mad if I don’t get another Devil Dog for the rest of MY life!!!

Whoever buys it, PLEASE keep to the recipe!


5 posted on 11/29/2012 8:24:12 PM PST by Beowulf9
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To: 2ndDivisionVet

It’s going to get parted out


6 posted on 11/29/2012 8:25:14 PM PST by GeronL (http://asspos.blogspot.com)
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Donate here!

It’s nearly Turkey destruction time ,again.
Let’s give Jim an early CHRISTmas and finish this thing! Eh?

7 posted on 11/29/2012 8:28:09 PM PST by moose07 (The truth will out, one day.)
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To: BipolarBob
There's a chance that whoever buys the brands will also purchase the bakeries. And if they do that, there is a good chance they may rehire some or all of the workers back.

Whether the workers get the same salaries and bennies is still up in the air.

Mother's and Archway were put temporarily out-of-business due to speculative LBO's, but they are both back and operating.

8 posted on 11/29/2012 8:31:22 PM PST by who_would_fardels_bear
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To: 2ndDivisionVet

“Even as 18000 jobs are wiped out”

...that is comedy at it’s best! More like 18000 union goombahs! Bwahahahahahahahaha


9 posted on 11/29/2012 8:34:59 PM PST by albie
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To: 2ndDivisionVet

I just love the waxy petroleum aftertaste of DingDongs!


10 posted on 11/29/2012 8:37:08 PM PST by MarkeyD (Obama is a victim of Affirmative Action)
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To: 2ndDivisionVet

Labor Union File.


11 posted on 11/29/2012 8:45:10 PM PST by Graewoulf ((Traitor John Roberts' Obama"care" violates Sherman Anti-Trust Law, AND the U.S. Constitution.))
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To: 2ndDivisionVet

I read somewhere that they are seeking permission to give out a treasure chest of bonuses as they go bankrupt.

By the way, does anyone else find it funny that these objets are called Hostess? Would you invite people over and serve them Twinkies? The time-honored practice of calling things what they aren’t in order to move the crap off the shelves.


12 posted on 11/29/2012 8:59:19 PM PST by firebrand
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To: firebrand

That name is almost 100 years old. Things were much different back then.


13 posted on 11/29/2012 9:03:13 PM PST by 2ndDivisionVet (You cannot invade the mainland United States. There would be a rifle behind every blade of grass.)
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To: GeronL

Good, I think. Lots of companies grow by acquisitions that never realize the synergies they were based on, and would be more profitable if they were parted out. Not only will the companies who end up owing pieces of Hostess shed the unions (they’re nuts if they don’t at least) - but they may be smaller privately-held companies who aren’t under the quarterly pressure faced by public companies that often results in them doing insane things just to “make the numbers”

I wouldn’t be surprised if in 10 years the new companies end up with more then 18,000 employees. Creative destruction at work.


14 posted on 11/29/2012 9:06:58 PM PST by bigbob
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To: bigbob

Many of these companies probably already own their own bakeries and only need the brand name rights and recipes.


15 posted on 11/29/2012 9:08:39 PM PST by GeronL (http://asspos.blogspot.com)
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To: 2ndDivisionVet

Homemade goodies were even better back then, and it was even more ridiculous to serve any store-bought tripe to guests. Regardless of Madison Avenue misnomers.

Are Uneeda Biscuits still around? You don’t need them and they’re not biscuits.


16 posted on 11/29/2012 9:11:26 PM PST by firebrand
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To: 2ndDivisionVet
That's 18k unions thugs gone, and 18k private sector jobs created.

Kinda sucks that Hostess got themselves into this mess in the first place
by allowing Unions control over their business. I may start buying twinkies again
since the union will be gone. I won't eat them but the food bank would love them I'm sure.

17 posted on 11/29/2012 9:17:38 PM PST by MaxMax
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To: firebrand

“I read somewhere that they are seeking permission to give out a treasure chest of bonuses as they go bankrupt.”

OK, you’ve made the allegation, now give us the site, or are you just stirring some pot?


18 posted on 11/29/2012 9:23:57 PM PST by Rembrandt (Part of the 51% who pay Federal taxes)
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To: Rembrandt
Hostess bonuses

It was on Drudge yesterday. It comes up as the first result if you put "Hostess" into Google.

19 posted on 11/29/2012 9:32:50 PM PST by firebrand
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To: GeronL
Ding Ding Ding!

You're exactly right in that many highly interested buyers will be existing novelty food bakers. In fact, some could already bake Hostess products on a toll basis. The equipment used for novelty baking is generic and to swap from one product to another simply means a recipe change, different pans, different oven conditions, packaging, etc.

These bakeries basically schedule production for a 1 day run that will be about 10 to 14 hours of production, 6 hours of sanitation that includes disassembly of a lot of of the equipment and last reconfiguring the equipment and preparing new batters, etc.

20 posted on 11/29/2012 9:53:18 PM PST by Hootowl99
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To: BipolarBob

When I heard about the million dollar bonuses upper management wanted the court to approve in the bankruptcy I figured the union employees had it right that something is seriously wrong with the company. clearly the problem was not just the unions.


21 posted on 11/29/2012 10:11:57 PM PST by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
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To: firebrand
Is it just me or is the media using conservative issues in their title and text to deflate the potential name recognition/emotional response i.e.: Fast and Furious. I believe I've seen several variations of this recently for different issues.
22 posted on 11/29/2012 10:12:41 PM PST by Redak
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To: 2ndDivisionVet

i could see little debbie making a grab for this.


23 posted on 11/29/2012 10:47:32 PM PST by Secret Agent Man (I can neither confirm or deny that; even if I could, I couldn't - it's classified.)
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To: who_would_fardels_bear

someone was mentioning a lot of equipment was pretty old.


24 posted on 11/29/2012 10:48:25 PM PST by Secret Agent Man (I can neither confirm or deny that; even if I could, I couldn't - it's classified.)
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To: Secret Agent Man
"i could see little debbie making a grab for this."

Hmmm so what you are saying is Little Debbie can't wait to get her hands on Ding Dongs?

25 posted on 11/29/2012 10:52:00 PM PST by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
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To: who_would_fardels_bear

I believe the deal will involve the brands going with some bakeries, but it’s more of a real estate deal than an operational deal. Part of the problem with Hostess is that they have outdated equipment at the bakeries and they haven’t gone through a modernization process (the cost was prohibitive). Also, if you start operating the bakeries, you are generally in union territory and they expect you to rehire the employees. I would say there is zero chance that anyone wants to get back into the same business model that Hostess was operating.

At the heart of the matter....if you go back a decade...Hostess had looked at their business model and knew there were problems. They could not get past the point of rebuilding the business model with the current contracts that they had with the union. It’s the same problem of the US postal system. When Hostess even offered to give the union a quarter of the stock and two seats on the board, in exchange for just a eight percent salary cut and employees paying seventeen percent of their medical insurance....that went nowhere.

Those 18k bakers? The union might be able to find replacement jobs for a 1k of them within a year, but the vast majority are finished in their local areas. Either they move, or they have to develop new job skills. It’s a bad deal for them....but it’s what they wanted in the end. Let them walk off into the sunset....as they desired.


26 posted on 11/30/2012 1:17:03 AM PST by pepsionice
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To: Beowulf9
Whoever buys it, PLEASE keep to the recipe!

Baxter, are you listening?

Hostess and its labor force can go to hell as far as I'm concerned. I haven't bought any of their output in decades. But, nevertheless, I'd be amused at the spectacle of a fully automated Hostess Brands successor.

27 posted on 11/30/2012 1:54:01 AM PST by cynwoody
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To: Beowulf9

The heck with ding dongs and twinkies. It’s the DRAKES CAKES that have the best recipes in the bunch.

Devil Dogs, Ring Dings, Drakes cupcakes, Drakes Coffee Cakes (Seinfeld actually did an episode on these) Funny Bones, Yodels, and those delicious little apple pies. Believe me, there is a big taste difference between Ding Dongs and Ring Dings.

I hope, I hope, I hope someone buys and makes the Drakes recipes. But with the Hostess thrift shop gone, I doubt I’ll ever get them for a dollar a box again. Michelle O must be so happy, the evil witch. I hope she chokes.


28 posted on 11/30/2012 4:08:23 AM PST by I still care (I miss my friends, bagels, and the NYC skyline - but not the taxes. I love the South.)
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To: firebrand

So, if Hostess is going out of business, and they are selling all of their assets, what are they supposed to do with the money?

Give it away to the union thugs who killed the company?

Or maybe they should just hand it over to Obamaclaus so he can decide who’s been naughty or nice.


29 posted on 11/30/2012 4:18:15 AM PST by Fresh Wind (Cut the cable today!)
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To: Mad Dawgg

Wouldn’t that make Little Debbie a Ho Ho?


30 posted on 11/30/2012 4:55:26 AM PST by mom4melody
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To: gunsequalfreedom; firebrand
When I heard about the million dollar bonuses upper management wanted the court to approve in the bankruptcy I figured the union employees had it right that something is seriously wrong with the company. clearly the problem was not just the unions.

Here's an excerpt from the link firebrand posted above:

"Hostess Brands Inc., in the midst of winding down its business, won approval Thursday from a federal bankruptcy judge to give as much as $1.75 million in bonuses to its executives.

The money is intended as an incentive for 19 top-level managers to remain with the Twinkies and Ding Dongs maker to oversee its liquidation.

The payouts will be granted only if managers "achieve a set of specific tasks and goals within a specified time frame that are designed to speed and lower the cost of the wind-down," Hostess spokesman Lance Ignon said.

The maximum bonus amount, Ignon said, represents 0.07% of Hostess' revenue and 0.17% of the value of its assets and is below the average for bonuses in comparable bankruptcy cases. Hostess Chief Executive Greg Rayburn would be not be eligible for a bonus, Ignon said."

BTW, Those are the first 4 paragraphs. It's $1.75 million spread across 19 managers, and contingent on specific goals regarding the wind-down. Additionally, the CEO doesn't qualify for a bonus.

31 posted on 11/30/2012 5:29:21 AM PST by cidrasm
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To: Fresh Wind

I assume they have creditors whom they can’t pay, or have to pay cents on the dollar. Isn’t that what usually happens in a bankruptcy? They were given the privilege of rewarding themselves first, with a bunch of verbiage to justify it, and the creditors then get less of what they are owed.

Just thinking of the other companies. Not the unions who drove them into the ground.


32 posted on 11/30/2012 6:05:49 AM PST by firebrand
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To: Rembrandt
"OK, you’ve made the allegation, now give us the site"

From the fourth paragraph of the article: "Hostess seeks approval in U.S. Bankruptcy Court in the Southern District of New York in White Plains, N.Y. to give its top executives bonuses totaling up to $1.8 million as part of its wind-down plans."

33 posted on 11/30/2012 6:07:16 AM PST by norwaypinesavage (Galileo: In science, the authority of a thousand is not worth the humble reasoning of one individual)
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To: Mad Dawgg
Hmmm so what you are saying is Little Debbie can't wait to get her hands on Ding Dongs?

Do you like to eat Little Debbie?

34 posted on 11/30/2012 6:12:29 AM PST by ArrogantBustard (Western Civilization is Aborting, Buggering, and Contracepting itself out of existence.)
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To: ArrogantBustard; shibumi

35 posted on 11/30/2012 8:46:49 AM PST by Salamander (If animals could speak, mankind would weep.)
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To: Salamander

Posting more “Food Porn” my little cupcake?

I’ll have you know that for breakfast I had organic pork sausage.

I know it was organic because it came from a real pig with real organs. For the benefits of the other organless foods on my plate, I played some Bach Fugues by E. Power Biggs in the background.


36 posted on 11/30/2012 9:06:50 AM PST by shibumi (Cover it with gas and set it on fire.)
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To: shibumi

I had organic granola, sans organs...unless you count rasins.

[with unwanted Christmas music in the background]

Bah, humbug.


37 posted on 11/30/2012 9:15:13 AM PST by Salamander (If animals could speak, mankind would weep.)
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To: shibumi

38 posted on 11/30/2012 9:21:15 AM PST by Salamander (If animals could speak, mankind would weep.)
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To: 2ndDivisionVet

I have agreat marketing device for Tasty Cakes which would bring 18,00 jobs to our are. Since ‘Ho-Ho’s” were named from the first two letters of it’s parent company, Tasty Cakes should buy it out and rename the cake (with pink filling and a brown chocolate Hershey kiss in the middle)to Tasty Cakes Ta-Ta’s! Perfect!!


39 posted on 11/30/2012 9:28:48 AM PST by Safetgiver ( Islam makes barbarism look genteel.)
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To: I still care

“Devil Dogs, Ring Dings, Drakes cupcakes, Drakes Coffee Cakes (Seinfeld actually did an episode on these) Funny Bones, Yodels, and those delicious little apple pies. Believe me, there is a big taste difference between Ding Dongs and Ring Dings.”

Absolutely true. Yes yes yes. Ring Dings are IT! Ding Dongs are just a poor copy, not at all making the grade.

Honestly, for years I have lamented the fact that in Phx Az it’s so hard to find Devil Dogs, and it seems they were much bigger when I was a kid, but then it seems so was everything;)

But I think they really were.


40 posted on 11/30/2012 10:59:48 AM PST by Beowulf9
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To: cidrasm

Not sure if that was supposed to change my mind but it does not. It seems times have changed since the last time I dealt with a trustee overseeing a company reorganization. Admittedly it has been a long time.


41 posted on 12/01/2012 4:30:08 AM PST by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
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