Posted on 11/16/2012 4:34:48 AM PST by RabidBartender
Hostess Brands Inc., the maker of the iconic snack, announced today that it will liquidate the entire company because not enough striking employees returned to work by a Thursday evening deadline set by the company.
"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," said Gregory F. Rayburn, chief executive officer. "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."
Hostess said it will seek bankruptcy court permission to close its business and sell its assets, "including its iconic brands and facilities. Bakery operations have been suspended at all plants."
"The Board of Directors authorized the wind down of Hostess Brands to preserve and maximize the value of the estate after one of the Company's largest unions, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), initiated a nationwide strike that crippled the Company's ability to produce and deliver products at multiple facilities," the company said in a statement.
"We simply do not have the financial resources to survive an ongoing national strike," Rayburn said in a statement Wednesday. "Therefore, if sufficient employees do not return to work by 5 p.m., EST, on Thursday to restore normal operations, we will be forced to immediately move to liquidate the entire company, which will result in the loss of nearly 18,000 jobs."
More at link
(Excerpt) Read more at abcnews.go.com ...
Obamanation Communism File.
Horizontal and vertical reintegration of all the processes with application of automation to the preparation of the basic ingredients has allowed the bread industry to break away from the large bread factory model.
Mechanization, automation, computerization, robotics and improved work methods are creating higher and higher productivity every day. Hostess was not prohibited from introducing new technology.
“Mechanization, automation, computerization, robotics and improved work methods are creating higher and higher productivity every day. Hostess was not prohibited from introducing new technology.”
Yea, yea, yea, always management. If they would just get out of the way, all would be JUST FINE. Sure.
I’m just surprised that you guys waste your time on this site.
They used antiquated equipment and systems and ended up losing their shirts. Tom Gephart is an equity owner in this company ~ a S O C I A L I S T ~ !!!!!!
He's as stupid as they come when it involves innovation.
Why are you defending socialist stupidity? Bankruptcy is the way to recycle useful assets into the hands of responsible and foreard looking owners.
“Why are you defending socialist stupidity?”
Well that’s a twist, saying someone that’s against unions is defending Socialism.
Anyway, have a nice weekend.
He didn't save it from bankruptcy and now it's in bankruptcy again, and it's going down the tubes ~ as are all his bribes and payoffs.
This is a buggy whip factory in the age of the flying car!
Look up the term "Plant Capacity" Would you spend several million dollars to move a single bakery plant that nobody needs ?
Now...would you spend several million dollars each to move say 15 plants that nobody will need or use?
O' wait...you can't even if you were silly enough to do it because you have no working capital since you are bankrupt...
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