Posted on 11/17/2012 5:17:52 PM PST by nickcarraway
Yes the Twinkie and the Ho Ho may not be available for snacking, but there are people who lost their jobs when Hostess closed its doors.
The bankruptcy of Hostess Brands Inc. made headlines across social media and news websites Friday as people across the country mourned the loss of the Twinkie.
But the news means more than a loss of a snack food option for 145 people who work at the Oakland bakery and numerous retail outlets around the Bay Area.
They are loosing their jobs because of the shut down.
The company, known for its Twinkies, Ho Hos and Wonder Bread announced Friday morning that it is shutting down operations and has filed a motion in U.S. Bankruptcy Court seeking permission to sell its brands and facilities.
Company officials blamed the decision on a recent strike by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union.
"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," CEO Gregory F. Rayburn said.
"Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders."
Local union officials were not immediately available for comment. The Colombo bakery at 580 Julie Ann Way in Oakland, a facility with around 145 employees, closed Friday, according to Hostess spokeswoman Anita Marie Laurie.
A voicemail recording at the bakery today directs employees not to come in to work. Hostess also has retail outlets around the Bay Area, in cities including San Pablo, San Leandro, Vallejo, Pittsburg, Dublin, Santa Rosa, Santa Clara and San Jose.
A statement on the company's web site indicates that retail stores may stay open for "several days" in order to sell already-baked products. The shutdown will affect 33 bakeries, 565 distribution centers, 5,500 delivery routes and 570 bakery outlets nationwide.
So...who won?
The “ripple effect” is somewhat related to the “trickle down effect”. In either case, the left is completely clueless to these and will not acknowledge losses outside of Hostess.
I don’t know why everyone is pissing and moaning about this. The unions killed another company. They also left a void in the marketplace that is ripe for new companies to fill. It’s not like our appetite for bread and delicious creme-filled cupcakes with a tasty chocolate icing has diminished any!
Let’s go, people who know the baking industry! Get a business plan put together, talk to Hostess about buying their facility and re-opening it as “Patriot Pastries” or whatever your heart desires.
Creative destruction! Let’s get to work!
“OK, if they sell the assets, could they be purchased, and new owners move the plant to right-to-work states and resume business?”
I believe so, however they have to give the NLRB some sort of notification.
There was a story out of Orlando, the liquidation filing was what they wanted. Their union rep had convinced them that liquidation would SAVE THEIR JOBS at the original pay and beenfits.
I am astounded at the idiocy. 5,800 “bakers” are out of work, how many will be needed by the new band name owners who likely already have their own bakeries and workforce? How likely is the new company going to be to put these idjits at the top of the list if there are new positions needed?
Not very, IMO.
I don’t thinnk those union idiots could care less who or what they hurt. It was about liberal greed, nothing more.
YOU HAVE NOW SEEN THE PERSONIFICATION OF STUPID....AND SO SOON AFTER A DEMOCRAT VICTORY IN AN ELECTION........could it be a co-incidence??/I think not.
I await news that the machinery has been moved to Mexico and
will be operated by the Bimbos chain to supply those brands.
No kidding!
In a good economy, there are loose jobs running wild and free!!
“Unions have been losing power for years,” said Ken Rumney, a striking worker outside of the Hostess plant in Biddeford on Friday. “This is an exceptional case. If Hostess had been allowed to get away with what they'd been trying to do, other corporations would have lined up to try the same tactics. Hopefully, this will be an example to other companies not to [try to] break their unions.”Has Ken let the cat out of the bag? Was this in fact a nationally-orchestrated chess move using Hostess, its employees, and supply chain as pawns in a larger game of union dominance? Where is the breach-of-trust line crossed between the members of the local and the union management chain? For that matter, by "nationalizing" the fight, was the union negotiating with Hostess in good faith? This could be a whole new ambulance to chase!
BIMBO owns Ms. Bairds, poor old lady being pimped like that... hopefully they won’t make Little Debbie into a BIMBO any time soon. :p
They (Mrs. Bairds/BIMBO) have Texas bakeries, maybe they could be expanded.
That might work for Tx or SoCal, but transportation cost and timeliness of delivery would rule out most other US locs.
That’s why Hostess had 33 bakery locs.
How exactly does this make the unions stronger? They get stronger the fewer workers they have?
5 Texas locations could supply Texas, Louisiana, Arkansas, Oklahoma and New Mexico. Maybe BIMBO could outsource the baking and distributing to other existing companies in other regions?
no more Snowballs : ~ (
Of course there are Mexicans who could operate the machinery
locally in the US markets. It would be a step up the food chain for the leaf blower guys.
certainly
I was questioning the potential for moving it all to Mexico which another poster said might happen
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