Posted on 11/16/2012 5:13:37 AM PST by Sub-Driver
The Demise Of The Twinkie: Hostess Files Motion To Liquidate
By Tom Gara
And that’s that: Hostess Brands, maker of Twinkies, Wonder Bread and more, announced this morning it has filed a motion with bankruptcy court to start liquidating the company immediately. A huge number of jobs are soon to be lost.
“Hostess Brands will move promptly to lay off most of its 18,500-member workforce,” said CEO Gregory F. Rayburn in the statement, “and focus on selling its assets to the highest bidders.”
In a letter posted on a new site set up to communicate with employees and suppliers through the liquidation process, Mr. Rayburn pinned the blame on its striking union:
Despite everyone’s considerable efforts to move Hostess out of its restructuring, when we began implementing the Company’s last, best and final offer, the Bakers Union chose to stage a crippling strike. This affected Hostess’ ability to continue to make products and service its customers’ needs and pushed Hostess into a Wind Down scenario. As a result, we are forced to proceed with an orderly wind down and sale of our operations and assets. We deeply regret taking this action. But we simply cannot continue to operate without the ability to produce or deliver our products.
There’s no way to soften the fact that this will hurt every Hostess Brands employee. All Hostess Brands employees will eventually lose their jobs – some sooner than others. Unfortunately, because we are in bankruptcy, there are severe limits on the assistance the Company can offer you at this time.
(Excerpt) Read more at blogs.wsj.com ...
wonder if the BK judge will approve liquidation
The alternative is to withdraw their earlier chapter 11 to chapter 7.
“...Enjoy your Xmas union hacks......”
Everything they touch turns to crap.
Dems, libs, unions...killing the goose that lays the golden egg at every opportunity.
GeronL ~ I have seen attempts but it's gettin hard to keep up I bet
It is, and I don't count layoffs too small to report. (Any company smaller that 50, doesn't have to file a WARN act notice).
Still my count shows over 88,000 since the election, as of this morning.
Let’s all become “NON-UNION” organizers. We’ll contact all union members who are against striking and have them join our “non union”. And of course, we’ll pay ourselves a nice salary.
Only if they buy the whole thing. I think that liquidation means Bimbo (or whoever) can buy the name and/or the recipes without buying the actual company. The liquidation is so Hostess the entity can pay back those liabilities rather than pass them along. Alternately, Hostess can sell the liability along with one or more of the assets as an offset on the price. Like Jeep was when AMC held it, Hostess is a HUGE name. It might be worth taking on some of the problems to get access to the name/products/distribution channels.
The Teamsters came to a agreement with Hostess so they could keep their jobs. They even told the Bakers Union that Hostess was not making up the liquidate scenario based on the books they saw. I now feel sorry for the Teamsters and non-union folks.
I've managed to get 4 interviews.
In five years.
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I own a Bimbo bread route. We were told at our annual meeting last December, that they didn't expect Hostess to last much longer than another year.
I would be surprised if Bimbo tries to purchase any part of Hostess. They seem to have their hands filled with their recent purchase of Sara Lee.
However, they sure do want their shelf space and were counting on getting it. I think they want to expand the Sara Lee line, and could use the extra space for Entenmanns.
Hostess just took over Targets private label bread in September. The route driver from Hostess even said that he can't understand Target signing a contract with a company that's in Bankruptcy.
I'm worried that now Bimbo will pick up the private label for Target, since we do it for Walmart. It's a lot of work for very little reward on cheap bread. Hopefully, Target will go back to using Flowers for their private label.
Merry Christmas greedy Union goons. Obama’s gonna move you all to disability and the rest of us have lost one more American company...
“There’s a box of Twinkies in that grocery store. Not just any box of Twinkies, the last box of Twinkies that anyone will enjoy in the whole universe. Believe it or not, Twinkies have an expiration date. Some day very soon, Life’s little Twinkie gauge is gonna go… empty.”
Tallahassee (Woody Harrelson)
Zombieland
http://www.youtube.com/watch?v=RgsNFGER7HE
One more reason to avoid anything associated with a union. This is why I buy Japanese cars. No unions labor = superior products
Hey, hopefully the Gubment will bail them out and buy them! Free Twinkies for everyone!!!!
Too bad we can’t buy stock.
bump
I want Twinkies with the banana filling from the banana twins Little Debbie makes. That would be awesome!
Oh, wow. I did get one interview and offer after the interview. It was commission only. I said, thanks but no thanks. So, basically, it was a crap job.
Not counting all those retail people who will themselves limited to 28 hour work weeks, which could be hundreds of thousands or even millions.
Where were Obamas walking shoes on this one.
He famously quoted he would stand with the unions, and put on his comfortable shoes and walk picket lines with them....
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