Skip to comments.Hostess to liquidate if bakers' strike continues through Thursday (18,000 jobs)
Posted on 11/14/2012 4:45:23 PM PST by tobyhill
Hostess Brands said Wednesday that it will go into liquidation unless bakers striking in protest against a new contract imposed in bankruptcy court return to work by the end of the day Thursday.
"We simply do not have the financial resources to survive an ongoing national strike," Hostess CEO Greg Rayburn said in a statement.
The liquidation would result in Hostess' nearly 18,000 workers losing their jobs. The bakers' union represents around 5,000.
The union did not immediately respond to a request for comment Wednesday, but has called the concessions demanded in the new contract "outrageous."
"Our members are on strike because they have had enough," bakers' union president Frank Hurt said in a statement Tuesday. "They are not willing to take draconian wage and benefit cuts on top of the significant concessions they made in 2004 and give up their pension so that the Wall Street vulture capitalists in control of this company can walk away with millions of dollars."
(Excerpt) Read more at money.cnn.com ...
0bama’s people LIVE on twinkies......
....no good can come of this.
Sooooooo, now 18,000 people go onto UC, dumbass union thugs. Good move, morons!
What!No more Twinkies?
Sad, looks almost inevitable.
Someone will happily come along and buy the Hostess/Ding Dong/Twinkie brand names, while shedding the union baggage. These striking fools just don’t realize that, do they?
The Unions cutting their own throats while destroying U.S. business’ again. Is it any wonder why many jobs go overseas where there are no unions.................???????
The irony here is that the company’s brand names — like Twinkies, Ring Dings and Wonder Bread — are probably worth more than all of its other assets combined. It won’t be long before another company buys the brand names and the ingredients for these products and keeps producing them ... probably with non-union labor in a “right to work” state.
Go for liquidation.... it’s the only way to be sure.
Destroy all the jobs, then complain because you’re unemployed.
Go ahead and liquidate. If the workers complain you can use the Twinky defense.
This is really sad.
The workers are stupid people. They will strike themselves out of a job. Their trademarks and recipes will be sold to the highest bidder.
Here's something else that just occurred to me. I wonder if the people who run the private equity firms that currently own Hostess would be the ones to buy the brand names at the liquidation sale!
Well, unions would rather take down a company than back down. It shows who’s boss, and provides a warning to other companies who may have to deal with them. To hell with the people who took the risks and built the companies in the first place. I would call them (unions) pond scum, but I actually have more respect for pond scum.
They should fire the 5,000 unionized workers only
The strikers are a bunch of Ding Dongs.
Bingo! Hostess brands will rise like the Phoenix, but the union workers will lose everything.
probably!! Maybe even buy their contracts.
Then they can open shop in Texas and other right to work states producing those popular brands to fulfil the contracts they bought. lol
Look for the union label...
The good news is that Hostess is headquartered in Texas, so I’m sure they’ll be back on their feet in no time under a different ownership structure.
Hopefully they will buy up the existing facilities and the non union people will be able to keep their jobs.
See my last post. Hostess is already headquartered in Texas, so it won’t take much effort to rise from the ashes!
“They are not willing to take draconian wage and benefit cuts...”
I wonder what the terms really are? Back in fall of 2008, just as the economy was tanking, Boeing folks went on strike. The last main disagreement was that they were being “forced” to pay a $15 copay for their doctor’s visits instead of $0. I imagine their press releases also used the word “draconian”.
I first thought that this was satire. The baking industry, I am told, has excess capacity and must reduce wages to remain competitive. This action does two things: it serves as a warning to the others that the union will come after them if they don't cave, and it gets capacity back in line, so the pressure on wages eases. The union wants both and doesn't give a damn about the stupid union members who are going to lose their jobs forever.
What skin does the other side have in the game? Anyone know? Somebody must be hoping the reorganization plan goes through. Who?
Personally, the cup cakes have not tasted the same - or nearly as good - since they went to the little vacuum form tray to hold the two cup cakes.
Move it overseas .
...too bad Government Motors did not take this path...
What part of IMPOSED in bankruptcy court do they not understand. I feel badly for the 13,000 not represented by the union but Hostess Brands should do what it needs to do.
Right. The one angle to this that adds some complexity and uncertainty is that Hostess owes millions of dollars to a couple of equity-fund owners/partners and nearly a billion dollars to bond holders, and the company would have to satisfy those lenders in the liquidation sale in order to “start over again.”
So... I guess they'd rather have no job, no paycheck, no benefits and no retirement, eh? Because it looks like that's what they're choosing.
Zombieland comes to mind.
The pink spongey balls with coconut call out to me.
Yes, it moved its headquarters here. That was a great idea, but some of its operations are in union states. (5,000 of 18,000 workers ruining it for everyone)
Save money by shutting down the bakeries in union states!
I wonder if I could pay them a visit, being they are local.
Hostess is one my own employers biggest accounts. I’m really sorry to see this happening.
At one time Americans wanted to work, it’s clear that these workers would rather collect unemployment.
Why worry about their pensions when they will be lost anyway if the place closes.
Snowballs are good, aren’t they?
Only 7 percent of the private sector work force is unionized. Losing 5000 is going in the right direction. Just move to a right-to-work state, problem solved.
Any Ding Dong can see that this means war.
I just finished eating a Hostess Orange cupcake.
You forget to mention that they should move it all to a business friendly none union state, say like, Texas.
Haven’t had a Twinkie or CupCake in many years. Just ain’t in the cards.
So true, as a connoisseur of their products, I agree, I love ‘em, besides I protest the fascist, nutritionists through out this once great nation, I hope our nation can rise from the ashes like Hostess!
“Look for the union label.”
I think that there might be a market for union label toilet paper.I’d buy some...
I was trying to remember what those were called!! Been a heck of a lot of years since I chowed one of those things!
Long live unions who will destroy a business to prove their power. Do the members want this to happen or only the union leaders?
They're just not getting this "redistribution of wealth" stuff, are they?
I could never understand the union cries of, “we’ll shut this place down!” Good for you, now where will you work dumbass?
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