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 ...
Indeed.
Who is John Gault?
Mr. Hostess moves to Colorodo...
That didn’t take long, guess that secret “union” button was the stinger.
Well said!
The acquiring company will likely just acquire the recipes, trademarks, and some of the equipment, and start producing the hostess brands in existing bakeries in right-to-work states. There will be no simple "change of ownership".
Not quite..it’s the board of the Baker’s Union that authorized the strike..there was NO strike vote taken..The Teamster’s Union wants the Bakers Union to hold a ..get this..SECRET BALLOT vote to see if they want to return to work..
Per the DMN, no plants in Texas - only the HQ.
Apparently, they were trying to operate a business with a 27% Union labor force. In the 0bamanation, one cannot successfully do that.
Thaaaat’s great. So they swallow the kool aid and then force thousands of others the take the poison against their will.
Dumb asses.
Their negotiators didn’t know how dire the straits were and how tight this deal was?
Enjoy your multiple bankruptcies yerself.
Dummies.
The union members should be the FIRST to be laid off.
And those idiots will probably consider it ‘early retirement’.
Like they did with Eastern Airlines?
The Union that signed is NOT the one that went on strike.
There is nothing wrong with a private sector union in a non monopoly not too big to fail situation.
They got too greedy and the company failed. No big deal.
the capitalist system worked the way it is supposed to.
The problem is unions in the public sector which have a monopoly, unions in the private sector with a monopoly and unions in too big to fail companies like GM.
Ah I see, i guess it’s a done deal now, sad, i guess i will hit up the hostess bread store after work to pick up bread and a few pies
Are you old enough to remember Eastern Airlines?
Ummmm, yes, they had to pay the mafia, I mean the union wgaes and benefits out the ass for positions that required at least an eigth grade education.
Simple solution.
The government will not allow it to go bankrupt.
They’ll buy it out, like Government Motors and make it hundreds of times less productive and the quality will go down the toilet, and the union workers will be overpaid and keep their jobs with shorter hours and more benefits.
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