Posted on 11/20/2012 7:49:57 PM PST by Nachum
Last week, when discussing the next steps for the company, and specifically the hope that mediation may resolve the epic animosity between management and workers, we stated that "What makes a mediation improbable is that the antagonism between the feuding sides has certainly hit a level of no return: "Several unions also objected to the company's plans, saying they made "a mockery" of laws protecting collective bargaining agreements in bankruptcy. The Teamsters, which represents 7,900 Hostess workers, said the company's plan would improperly cut the ability of remaining workers to use sick days and vacation." Sure enough, moments ago we learned that mediation has now failed and the liquidation may proceed. And since in America nobody understands that proper sequence of events involved in a bankruptcy liquidation, where the valuable parts always end up being acquired by someone, in this case the Twinkie brand and recipe, let the pointless Ebay bidding wars over twinkies continue. As for what really happens next, if indeed Bimbo is prohibited from acquiring the assets in the Stalking Horse auction due to anti-trust limitations, then the buyer will almost certainly be a "financial", i.e., another PE firm, whose coming means the end of any hopes and dreams of preserving union status at fresh start Hostess, or whatever the new firm will be named.
From the WSJ:
Hostess Brands Inc. said Tuesday night it would proceed with liquidation plans after mediation fails.
Earlier Tuesday, the head
(Excerpt) Read more at zerohedge.com ...
” - - - Pack it all up and ship it to - - - “ CHINA, naturally.
Cool! The new company will be free of the evil union! Maybe most can keep their jobs?
Way to Go, you Idjits!!!
Am I the only one who finds glee in crashing and burning of these union-run companies? I hope all union run companies go bankrupt so that these “workers” get a taste of their own medicine when they have to COMPETE and IMPROVE to keep their deadend jobs.
“An 8% cut would shave $200 a week off the employee’s income? Let’s see...that means 1% would be $25.... So times one hundred....carry the seven.....why......that’s like $2500 a week!.....$10,000 a month.....$120,000 a year!....what if that’s net?......Ho-Ho indeed!”
And then there are the “work rules,” which probably require that this guy just drive the truck, and have a ride along “helper” to move the product from the truck to the store while good old Doug sits on his ass in the truck playing with his iPad (or maybe himself)! He’s 49. I hope the rest of his life is spent in an unsuccessful search for another job! Payback should be a bitch! It’s going to be “interesting” when all the RATs “feelings” about things hit hard up against the “realities” of economics.
Do you really think that all Bimbo bread is made in Mexico? I happen to know there are bakeries all over the United States and even in Europe. How could Bimbo make everything in Mexico and get it all over the United States by 3:00 AM every morning?
More than I made as a Corporate Vice President / Logistics Manager responsible for a $22 Million Dollar Yearly Budget overseeing a four State territory. We had 24/7 operations with my butt on the line if any Vendor ever screwed up.
Boy oh boy, did I make the wrong choice of careers, but with my sweet tooth I would be a three hundred pound Diabetic by now if I was a Hostess driver.
OUTSTANDING post, Nachum! Thanks. Thanks to Tyler Durden and the great posters at zerohedge.
HOORAY Hostess! Prepare. Persevere. Liquidate (when necessary).
Don’t know. I never ate any Bimbo bread. Is it fresh?
I used to walk past the Bimbo Bakery warehouse in El Paso nearly every day on my way to Juarez for lunch. It was just two blocks from the border on the US side. Nice friendly people inside where you could buy products for very low prices. Often there were little old Mexican ladies there buying many loaves of bread and sometimes I would carry their bags and walk them back over the bridge.
I wish no ill on anyone, but when the same people wish me and my Family nothing but misery because we stand up for our Constitutional Republic, my sympathy is waning.
In another time we would all sympathize watching a Company failing, especially when that same Company touched our lives from childhood to adulthood. I was apoplectic when the Helms Truck stopped coming through our Neighborhood, but I was a kid when that happened.
Payback is a bitch. As Rush said, he hoped Obama failed. Well, it looks like Obama is fulfilling Rush's prophecy.
Now the Union workers don’t have to worry about sick leave and vacation.
Stupid, Just plain stupid.Thousands of people out of work because of hard headed BS.
Well, they bought Mrs. Bairds. It is in Texas.
Probably in most other states.
The greedy union punks are reapiing what they have sown. May they harvest in the fullest measure.
HOSTESS SHRUGGED
I’m not just talking about the Bimbo brand. I’ve never tried it either. But that is not all they sell. They sell Brownberry Bread and Arnold’s Thins and Thomas English muffins, among other brands. And I know they have bakeries in the Chicago area.
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