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 ...
Obamanation Communism File.
Same thing is happening with American now. Unions have killed it.
Problem is, their shelf life never has a chance to be tested at my house!
The last time I had a Hostess fruit pie it had more air bubble than fruit filling inside. Never again.
Its the principle that counts. They are NOT going to let a greedy company, not even one in bankruptcy take advantage of them even if it means they go on unemployment comp. If one gets away with it then they all will do it.
Obama feels the same way about the economy. Let the chips fall where they lie if it blows up, those rich aint gettin those tax cuts..
:)
No Mo’ Ho Hos ...
I wonder if Obama will seize the company in the name of “national security” and rename it “Lil’ Obama Snack Cakes, Inc.” ...
VC companies have investors, most VC investments lose money, and it takes a LOT of money to start or turn around a company. High risks, sometimes high rewards.
With the capital tax structure, profits require moderate taxes in perpetuity and losses buy you nothing in terms of a tax break.
In bankruptcy, the company is able to restructure contracts, with the approval of the judge. The judge approved, but the workers went on strike anyway. Screw them.
Well, as for me, I’ll have to find another defense if I murder someone and don’t have Twinkies to blame it on.
Good luck with that. My daughter and I tried today and they were already closed up. Workers walking out with boxes of Hostess in their arms.
I went to Shoppers and Giant today and got them for $2.79 and $3.00 a box. :~)
I hope the Hostess execs told them they were their "severance packages" ...
I am surprised. Out of all the posts on all the Hostess threads I have read, not one has mentioned deep fried Twinkies . . .
Your statement has nothing to do with my post. Hostess signed a labor agreement with the Baker’s Union. Hostess is now bound by those rules.
VC companies have investors, most VC investments lose money, and it takes a LOT of money to start or turn around a company. High risks, sometimes high rewards.
With the capital tax structure, profits require moderate taxes in perpetuity and losses buy you nothing in terms of a tax break.
There you go again, interjecting facts and reality into a perfectly good liberal hissy fit. You still didn't get the memo: ANY profits are evil because they were earned off the backs of the 'little man', and who cares if a bunch of rich white guys lose a little money, it is for the social good of all the employees - it should be their civic duty to just spread some of it around; afterall, had they not stolen it from the masses, they wouldn't have it in the first place. / sarc
A lot of people fail to recognize that a lot of the investors in the companies they call evil are MF's that their retirements are invested in. Profit for shareholders cannot be 'evil' as over half of the population derives some benefit from it. The number of companies that would be long gone or not exist at all absent VC and PE is immense. Add to that the number that wouldn't exist in their current form absent capital investment fueled by MF's and private investors and you would have nearly every corporation in America.
Simple accounting, common sense and logic evade most of the libtards and social do-gooders.
If you enter into a labor agreement, the union has to approve of your changes to the agreement, or they have the ability to strike.
The union has the ability to strike at any time for any reason or no reason at all.
Thing is, in bankruptcy, what the judge orders is what happens. And the judge ordered that unionist pay be reduced. Everyone but one union was fine with that, understanding it was bankruptcy.
wow.. thanks for the info
well here in Orange county fullerton to be exact the store was open and the line was very long, but i got the stuff i needed and told the two gals in the store i am sorry and good luck and thank you, even a route drived came in and said good by its very sad for them.. dumb bakers union
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