Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Hostess Brands to Wind Down Company After BCTGM Union Strike Cripples Operations
Herald Online.com ^ | November 16, 2012 | Hostess Brands Inc.

Posted on 11/16/2012 4:35:56 AM PST by Vince Ferrer

RVING, TEXAS, NOV. 16, 2012 — /PRNewswire/ -- Hostess Brands Inc. today announced that it is winding down operations and has filed a motion with the U.S. Bankruptcy Court seeking permission to close its business and sell its assets, including its iconic brands and facilities. Bakery operations have been suspended at all plants. Delivery of products will continue and Hostess Brands retail stores will remain open for several days in order to sell already-baked products.

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.

On Nov. 12, Hostess Brands permanently closed three plants as a result of the work stoppage. On Nov. 14, the Company announced it would be forced to liquidate if sufficient employees did not return to work to restore normal operations by 5 p.m., EST p.m., Nov. 15. The Company determined on the night of Nov. 15 that an insufficient number of employees had returned to work to enable the restoration of normal operations.

The BCTGM in September rejected a last, best and final offer from Hostess Brands designed to lower costs so that the Company could attract new financing and emerge from Chapter 11. Hostess Brands then received Court authority on Oct. 3 to unilaterally impose changes to the BCTGM's collective bargaining agreements.

Hostess Brands is unprofitable under its current cost structure, much of which is determined by union wages and pension costs. The offer to the BCTGM included wage, benefit and work rule concessions but also gave Hostess Brands' 12 unions a 25 percent ownership stake in the company, representation on its Board of Directors and $100 million in reorganized Hostess Brands' debt.

"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."

In addition to dozens of baking and distribution facilities around the country, Hostess Brands will sell its popular brands, including Hostess®, Drakes® and Dolly Madison®, which make iconic cake products such as Twinkies®, CupCakes, Ding Dongs®, Ho Ho's®, Sno Balls® and Donettes®. Bread brands to be sold include Wonder®, Nature's Pride ®, Merita®, Home Pride®, Butternut®, and Beefsteak®, among others.

The wind down means the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores throughout the United States.

The Company said its debtor-in-possession lenders have agreed to allow the Company to continue to have access to the $75 million financing facility put in place at the start of the bankruptcy cases to fund the sale and wind down process, subject to U.S. Bankruptcy Court approval.

The Company's motion asks the Court for authority to continue to pay employees whose services are required during the wind-down period.

For employees whose jobs will be eliminated, additional information can be found at www.hostessbrands.info. The website also contains information for customers and vendors. Most employees who lose their jobs should be eligible for government-provided unemployment benefits.


TOPICS: Business/Economy; News/Current Events
KEYWORDS: bakery; bctgm; biglabor; dopeydems; epicfail; hostess; layoffs; losers; strike; twinkies; unions
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-87 next last
To: pepsionice

Twilight of the Twinkies.


61 posted on 11/16/2012 6:23:00 AM PST by Miles the Slasher
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeaHawkFan

Hostess has buyers lined up already. And those buyers want the brands and the recipes only. The don’t want the Hostess drivers and bakers. They already have their own. And any private equity company that might buy the brands will not buy the operations and bakeries, either. The baking business is a terrible business these days and there’s a ton of overcapacity.


62 posted on 11/16/2012 6:24:11 AM PST by jimbo123
[ Post Reply | Private Reply | To 54 | View Replies]

To: struggle

“Another case of unions hanging themselves.”

After these workers run out their unemployment benefits and are forced to look for work, what is the likelihood that company will be unionized? I think it unlikely. So the unions hang themselves twice in this case.

I am going to buy a package of Twinkies to enjoy one last time.


63 posted on 11/16/2012 6:24:42 AM PST by theBuckwheat
[ Post Reply | Private Reply | To 3 | View Replies]

To: jimbo123
The baking business is a terrible business these days and there’s a ton of overcapacity.

You'd think with Baraq handing out all those food stamps and TANF the business would be booming.

64 posted on 11/16/2012 6:35:46 AM PST by nascarnation (Baraq's bankruptcy: 2016)
[ Post Reply | Private Reply | To 62 | View Replies]

To: RabidBartender

Bet they won’t be so happy looking soon, and I know they won’t be eating twinkies.


65 posted on 11/16/2012 6:35:49 AM PST by pepperdog ( I still get a thrill up my leg when spell check doesn't recognize the name/word Obama!)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Spktyr
Interesting. Do you mean you can ask how someone voted in the Presidential election and make a job offer based on that information?
66 posted on 11/16/2012 6:40:47 AM PST by pepperdog ( I still get a thrill up my leg when spell check doesn't recognize the name/word Obama!)
[ Post Reply | Private Reply | To 35 | View Replies]

To: pepperdog

“Well, let’s say this Twinkie represents the normal amount of socialism in the United States. According to this morning’s sample it would be a Twinkie…thirty-five feet long weighing approximately six-hundred pounds.”


67 posted on 11/16/2012 6:44:25 AM PST by Buggman (returnofbenjamin.wordpress.com - Baruch haBa b'Shem ADONAI!)
[ Post Reply | Private Reply | To 65 | View Replies]

To: Vince Ferrer
Hostess Brands is unprofitable under its current cost structure, much of which is determined by union wages and pension costs.

The Bottom Line..............

68 posted on 11/16/2012 6:45:53 AM PST by Red Badger (Lincoln freed the slaves. Obama just got them ALL back......................)
[ Post Reply | Private Reply | To 1 | View Replies]

To: pepsionice
The Twinkie will live on. The union workers will live on unemployment. I hope that the new company, whoever they will be, hires those who crossed the picket line.
69 posted on 11/16/2012 6:47:41 AM PST by bella1 (As it was in the days of Lot.....)
[ Post Reply | Private Reply | To 2 | View Replies]

To: jocon307
Can somebody please explain to me why unions can’t just be FIRED and replaced by other workers?

Because of the threats and violence that the union thugs will put on the new workers. Violence is the only real tool unions have.

70 posted on 11/16/2012 6:53:57 AM PST by super7man
[ Post Reply | Private Reply | To 21 | View Replies]

To: Vince Ferrer

” Most employees who lose their jobs should be eligible for government-provided unemployment benefits. “

That oughta pay a good, living wage.


71 posted on 11/16/2012 6:55:35 AM PST by sawmill trash (Just clinging)
[ Post Reply | Private Reply | To 1 | View Replies]

To: newnhdad

“they were able to strike and shut the place down because being out of work paid more than working.”

They will find out that the claim made is false. Bakers, union or not, are well paid and they are going to have a very tough job keeping their hearth and home together in one piece.

I guarantee you that we will be seeing stories about these bakers losing their homes. Tough darts you goobers.


72 posted on 11/16/2012 6:59:05 AM PST by buffaloguy
[ Post Reply | Private Reply | To 8 | View Replies]

To: Vince Ferrer

As Dear Leader Obama once said: “Elections have consequences.”

Vote to unionize a shop and suffer the consequences.

Vote for greedy commie thugs as your union leaders and suffer the consequences.

Vote for a racist, power mad, commie thug as president of the USA and suffer the consequences.


73 posted on 11/16/2012 7:12:25 AM PST by Iron Munro ("Jiggle the Handle for Barry!")
[ Post Reply | Private Reply | To 1 | View Replies]

To: jocon307
Drake’s coffee cake was the best of all coffee cakes and I will be very sad not to eat it anymore.

Drake's Coffee Cake and Drake's Devil Dogs, two of our favorites.

None of the look-alike products from other bakeries have quite the same flavor and quality.


74 posted on 11/16/2012 7:19:18 AM PST by Iron Munro ("Jiggle the Handle for Barry!")
[ Post Reply | Private Reply | To 21 | View Replies]

To: struggle

Better to take an 100% pay cut than an 8% pay cut! Morons.


75 posted on 11/16/2012 8:09:41 AM PST by TurboZamboni (Looting the future to bribe the present)
[ Post Reply | Private Reply | To 3 | View Replies]

To: pepperdog

Last I checked with the HR drones, yes. You may not ask about past union membership, but you can (as I understand it, consult an appropriate lawyer for official advice before doing anything) ask who they voted for.


76 posted on 11/16/2012 8:34:36 AM PST by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
[ Post Reply | Private Reply | To 66 | View Replies]

To: jps098

This is, as I understand it, legal. (I am not a lawyer.) You cannot ask about prior union membership or you open yourself up to charges. But you certainly are still allowed to say, “If this person was employed by company X, I do not want them working for me as I view the company as incompetent in their selection of personnel” or other similar declared logic.


77 posted on 11/16/2012 8:40:17 AM PST by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
[ Post Reply | Private Reply | To 56 | View Replies]

To: Lazamataz

I thought of that too. Blacklists that are based on information like that are also illegal.

And unnecessary if you are looking at resumes and know how to use Google.


78 posted on 11/16/2012 8:42:52 AM PST by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
[ Post Reply | Private Reply | To 46 | View Replies]

To: Spktyr

I’m tired of following the left’s laws. Eff em.


79 posted on 11/16/2012 9:19:57 AM PST by Lazamataz (Abandon all hope.)
[ Post Reply | Private Reply | To 78 | View Replies]

To: Vince Ferrer
Good Job Union F**ktards... Now you can "strike" in the Unemployment line.

Amazing how stupid the Union Mentality is. I've seen this crap over and over. They will go on strike for months for a 25 cent raise and if you figure in the wages lost in the strike it takes them 10 years or more just to break even. Sometimes longer. But the Union Fatcats get their checks no matter what.

The mind boggles at the stupidity involved.

80 posted on 11/16/2012 9:31:13 AM PST by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-87 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson