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 ...
The list, Ping
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The fruits of greed and corruption. This is how commrades of the communist unions operate. Hate, lies and destruction.
18,500 American jobs headed to MEHico and the union declares a great victory! Way to go knuckledraggers!!! Party hard!
Red on red.
BTTT.
any investor would be a fool to buy Hostess - the unions make this an impossible buy.
Perhaps a little blanket meeting in the parking lot is in order.
This driver made $130K a year. Hostess needed it cut to $120K. This guy makes the UAW look like a bunch of paupers.
Makes more sense to buy the patents, the distriburting rights and teh euipment.
Pack it all up and ship it to a right to work state. Start again there.
Makes more sense to buy the patents, the distriburting rights and teh euipment.
Pack it all up and ship it to a right to work state. Start again there.
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!
Someone may buy the name, recipes, and trademarks, but I seriously doubt anyone is buying the company as currently structured.
Bet that Thanksgiving dinner will be a sad occasion for 18,000 families.
The beauty of liquidations is that union contracts are torn up, and there's no obligation to hire a single union worker or even buy the existing plants. Bimbo could make everything in Mexico.
If they buy the assets and not the corporation they won’t be stuck with the unions.
Not saying you’re wrong but what legal lever can unions use to do that? If there is a law that says you may not close a business then we are already have a fascist dictatorship.
I suppose there are pensions. I wonder if they are fully funded?
“18,500 American jobs headed to MEHico and the union declares a great victory! Way to go knuckledraggers!!! Party hard!”
Maybe not! Did you read the bit about the anti-trust laws that may well scuttle the Bimbo bid? A perfect world here would be for a non-union bakery to buy Hostess’ assets and leave these morons sitting on their front porches!
” - - - 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.
Bimbo is the largest bread manufacturer in the us and you ate bimbo bread at some point in your life
Once it goes into bankruptcy and liquidation the union contract is null and void as it will be a new entity that will be Hostess thus a very good buy. To buy the present Hostess and the union contract that goes with it, would be an act of financial insanity.
Ok you legal eagles out there. Is there any avenue for the workers who lost their jobs to sue the union? Blame their striking for the cause of the company’s demise and seek to recover lost pensions, vacation, etc?
Come on down to Texas!
If my Math is correct he was getting paid about $11000 a month or $132000 a year to drive a delivery truck? Plus full a fully paid medical and pension plan? No wonder they went under.
You really don’t have to buy much. If your already a bakery like Bimbo all you need is the recipe. That could be e-mailed after payment.
“More than I made as a Corporate Vice President / Logistics Manager...”
...and more than any troop under the rank of O-6 makes while deployed in Afghanistan (even with all the allowances, combat pay and tax-exempt pay provisions).
...at least the driver isn’t getting his a$$ blown up by IEDs...poor thing.
Bimbo wouldn’t necessarly move Hostess to Mexico, they have a lot of bakeries in the US which are non union!
A lot of the bread we buy is Bimbo, you have to look at the fine print on the wrapper to find it.
Bimbo is the largest bakery corporation in the World.
Is Sandra Fluke their spokesperson?
Heh, “failure to represent”. Hate to see what the union contracts actually state.
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