Good bye, Twinkie – Hostess Brands liquidates


By tvgnus   Follow   Fri, 16 Nov 2012, 5:47am   5,345 views   59 comments
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http://www.centralvalleybusinesstimes.com/stories/001/?ID=22308

Hostess Brands Inc. of Irving, Texas, says it has filed for bankruptcy liquidation because workers, members of the Bakery, Confectionery, Tobacco Workers and Grain Millers Union, struck its plants, including one in Sacramento.

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  1. joshuatrio


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    20   10:43am Fri 16 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike  

    All this Twinkie talk - think I'm gonna have to go out and get one tonight.

  2. taxee


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    21   10:47am Fri 16 Nov 2012   Share   Quote   Permalink   Like   Dislike (1)  

    zzyzzx says

    Hopefully someone will buy the plant equipment and move it to a right to work state.

    And so we get to the crux of the problem: all those numbers and signatures on contracts for homes outside the boondocks have to either be changed or they get bought by the fed. Pushing the reset button on industrial stability and workers rights will get the nobility reborn. Be careful what you wish for.

  3. zzyzzx


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    22   11:11am Fri 16 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike  

    http://dailycaller.com/2012/11/16/boxes-of-twinkies-ho-hos-going-for-100-and-more-on-ebay/

    With Hostess shutdown, boxes of Twinkies, Ho Hos going for $100 and more on eBay

    A box of Ho Hos is being sold for $59.99, while a 48-pack of Zingers is going for $43.

    One trickster claims to have “the last Twinkie in the heartland” and the single dessert has a starting bid of $50, but you can buy it right now for $5,235.

    Other sellers are taking more modest approaches with starting bids from $11 to $15.

    The best eBay listing so far comes from a seller who wants to give away his last 10-count box of Twinkies for $595 – but there’s a catch: There are only four cakes left because the seller “got into them this morning.” But how can you go wrong with an expiration date of 12-02-2057?

    That's probably what they would have to sell for at retail in order to pay what the unions thugs wanted.

  4. zzyzzx


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    23   11:13am Fri 16 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike  

    WalMart already sells it's own Twinkee clone. No union thugs needed!

  5. zzyzzx


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    24   11:16am Fri 16 Nov 2012   Share   Quote   Permalink   Like (2)   Dislike  

    Would be better if we knew exactly the deal the the union thugs turned down.

  6. upisdown


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    25   11:19am Fri 16 Nov 2012   Share   Quote   Permalink   Like   Dislike (1)  

    lostand confused says

    Maybe some other companies will come in and buy them in bits and pieces, while jettisoning the debt?

    You just found a job for Mitt Romney. But what will all the hoarders and doomsday preppers buy if he turns it around?

  7. CaptainShuddup


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    26   11:59am Fri 16 Nov 2012   Share   Quote   Permalink   Like (3)   Dislike  

    ?w=270&h=203

    The Vicims...

    All Hostess Brands employees will lose their jobs in the coming weeks, some sooner than others, the company announced Friday. The layoffs span nationwide, and represent a deep cut in mid-wage jobs that often came with benefits. The company had operated 33 bakeries, 565 distribution centers and 570 outlet stores across the country.

    Many production workers earned up to $20 an hour, plus had access to medical benefits, according to Michael O'Brien, a former Hostess employee who had worked at the company for 45 years, in various sales functions, before he was offered a buyout last year.

    "People inside the plants really made a good living," O'Brien said. "I feel sorry for them."

    That's $20 an hour to wheel baker's trays of Twinkies around a plant, and take smoke breaks while the Ho Hos are in the oven.
    I wonder what books the guy that pushes the Green button in the morning then the Red button at quitting time, read in between?

  8. rooemoore


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    27   12:55pm Fri 16 Nov 2012   Share   Quote   Permalink   Like (3)   Dislike (1)  

    Yes, the real problem in this country is that junk food is too expensive. We need to keep wages low so that we can make cheap junk food that low wage earners can afford.

  9. thunderlips11


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    28   12:58pm Fri 16 Nov 2012   Share   Quote   Permalink   Like (2)   Dislike (1)   Protected  

    zzyzzx says

    WalMart already sells it's own Twinkee clone. No union thugs needed!

    Just illegal immigrants with stolen SSNs.

  10. CaptainShuddup


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    29   1:09pm Fri 16 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike (1)  

    rooemoore says

    Yes, the real problem in this country is that junk food is too expensive. We need to keep wages low so that we can make cheap junk food that low wage earners can afford.

    So you're saying the Liberal Union assault on Hostess was all about saving us from our selves, and you really didn't give a good rip about the plight of those employees that work there. They are better suited on the Welfare dole for the Liberal cause after all. I mean there's always 2016, and the Liberals needs votes. I wonder when Cadillac will make the Welfare edition of the XKS?

    All to save me from my fat ass from my self. YET! The corn ethanol subsidy was upheld by the EPA today, in spite of the drought. It's bloody Liberal perfecta, you should take those odds to the track.

  11. Scagnetti


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    30   1:33pm Fri 16 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike  

    I work in a union shop myself...although I am a salary manager. Truth is, even with good management, it's hard for union shops to compete. They're up against free trade, competing with foreign countries paying next to nothing for wages and no benefits, American non union shops with lower pay and lesser benefits and no pensions, and American consumers wanting the cheapest goods possible. The long slow decline will continue.

    As far as hostess in particular, how can you afford to pay union wages when you're selling $2 low value products? It's not car manufacturing or steel production where there is a lot of money to be made on each sale. I would think it would be hard to make a profit this way even with tremendous volume.

  12. rooemoore


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    31   2:23pm Fri 16 Nov 2012   Share   Quote   Permalink   Like   Dislike (1)  

    CaptainShuddup says

    rooemoore says

    Yes, the real problem in this country is that junk food is too expensive. We need to keep wages low so that we can make cheap junk food that low wage earners can afford.

    So you're saying the Liberal Union assault on Hostess was all about saving us from our selves, and you really didn't give a good rip about the plight of those employees that work there. They are better suited on the Welfare dole for the Liberal cause after all. I mean there's always 2016, and the Liberals needs votes. I wonder when Cadillac will make the Welfare edition of the XKS?

    All to save me from my fat ass from my self. YET! The corn ethanol subsidy was upheld by the EPA today, in spite of the drought. It's bloody Liberal perfecta, you should take those odds to the track.

    No, that isn't exactly what I'm saying. I am merely pointing out that wages have stagnated for a long time in this country.

    The problem isn't that Hostess paid it's employees too much, it is that their competitors pay their employees too little. (That and some dumbass management decisions with the business)

    Twinkies can be made anywhere in the world. They travel well and last forever. So yeah, I can see how cheap labor competitors would want to move in to the US market. Especially when they are not required to say that their product was made in Vietnam or Indonesia.

    Look, I understand people getting pissed off at the union being so firm and, possibly, shooting itself in the foot. But don't you think that maybe the discussion should be how can we get wages to go up?

    We are in a race to the bottom as far as compensation is concerned and its a race we will lose even if we win it.

    Instead, why not enforce living wage salaries in the US and tax imports more? Businesses want a level playing field. People want a decent wage. It is the job of governments to make both happen and keep both happy.

  13. taxee


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    32   2:32pm Fri 16 Nov 2012   Share   Quote   Permalink   Like (2)   Dislike (1)  

    rooemoore says

    Instead, why not enforce living wage salaries in the US and tax imports more? Businesses want a level playing field. People want a decent wage. It is the job of governments to make both happen and keep both happy.

    Some people want to pay slave wages and have high housing costs too. Can't imagine why. Maybe they want to own 100% of everything, your wife, and your daughter too?

  14. errc


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    33   2:37pm Fri 16 Nov 2012   Share   Quote   Permalink   Like (2)   Dislike (1)  

    SFace says

    woppa says

    Wonder bread is good for the kids?

    You're right but If you can get kids to eat wonder bread for kids (with vegis and milk), I am satisified, lol. White Bread taste better than Grain. He (they 5, and 2 1/2) eats it straight up, no jam, jelly, spread or meat..

    White bread, delicious and nutritious (in someones bizarro world).

    Is it any wonder why bigphrma and the health insurance companies are sucking us dry, when you have people crying foul because the great american icon hostess won't be making twinkies any longer, and otherwise seemingly informed individuals such as Mark here are patting themselves on the back for feeding their kids white bread while avoiding meat,,,,,

  15. elliemae


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    34   1:27pm Sat 17 Nov 2012   Share   Quote   Permalink   Like (2)   Dislike (1)   Protected  

    Their "food" was overprocessed, tasted horrible and with the multitudes of knock-offs such as the walmart brands, little debbie, etc they had no chance.

    Hostess needed to change with the times and chose not to. Had they attempted to offer healthier fare, change their recipes to at least giving the appearance of health, and attempted to work with the union perhaps they would have had a chance.

    I'm sure that management will make a shitload of bonuses and such that their "retirement" will be assured. The line workers - well, that's a different story.

    I blame Michelle Obama and her Liberal cohorts. If only she had planted twinkies and those horrible hostess cupcakes in her White House garden, the rest of the country would have blindly followed & done the same. She could have saved Hostess brands, but instead she chose to plant tomatos & cucumbers.

    My proof that it's a Liberal Conspiracy:
    CaptainShuddup says

    They are better suited on the Welfare dole for the Liberal cause after all. I mean there's always 2016, and the Liberals needs votes.

    TPB would never claim a liberal conspiracy unless he had some proof or was high. And since pot is illegal in florida, being a responsible conservative, he's probably not high...

  16. zzyzzx


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    35   4:14pm Sat 17 Nov 2012   Share   Quote   Permalink   Like (2)   Dislike  

    rooemoore says

    But don't you think that maybe the discussion should be how can we get wages to go up?

    Yeah, we need massive import duties, which I am in favor of.

  17. zzyzzx


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    36   4:14pm Sat 17 Nov 2012   Share   Quote   Permalink   Like (2)   Dislike  

    elliemae says

    Hostess needed to change with the times and chose not to. Had they attempted to offer healthier fare, change their recipes to at least giving the appearance of health

    I'm not inclined to think that overpriced organic twinkees would have sold either.

  18. elliemae


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    37   9:18am Sun 18 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike   Protected  

    If they had made their fare taste like food it would have helped.

  19. Homeboy


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    38   10:14pm Sun 18 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike  

    Thank God the real story is making the rounds on facebook, 'cuz the "blame the unions" crowd here sure isn't gonna let anyone in on it.

    http://americablog.com/2012/11/hostess-twinkie-ceo-salary.html

  20. Dan8267


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    39   1:31am Mon 19 Nov 2012   Share   Quote   Permalink   Like (3)   Dislike  

    I felt a great disturbance in the force as if millions of fat asses cried out in despair and were suddenly silenced.

  21. lisalisa


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    40   4:37am Mon 19 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    Do I hear the Sound of "Little Debbie" to the rescue?

  22. CaptainShuddup


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    41   11:49am Mon 19 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    Homeboy says

    'cuz the "blame the unions" crowd here sure isn't gonna let anyone in on it.

    Yup, that's me. I'm over here with my freaking thing doing that stuff I do, to suppress information I know nothing about, from people I never knew existed. Pointing my ridiculously oversize foam finger at Obama.

    I'm clearly no match for Facebook.

  23. edvard2


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    42   12:08pm Mon 19 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    PS: Obama won. Get used to it.

  24. rooemoore


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    43   12:13pm Mon 19 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    CaptainShuddup says

    Homeboy says

    'cuz the "blame the unions" crowd here sure isn't gonna let anyone in on it.

    Yup, that's me. I'm over here with my freaking thing doing that stuff I do, to suppress information I know nothing about, from people I never knew existed. Pointing my ridiculously oversize foam finger at Obama.

    I'm clearly no match for Facebook.

    I think there is a knee-jerk reaction to blame the unions. I understand those who have legitimate gripes with public unions that have essentially been bribed with excessive benefits packages by politicians. (of course it is not the union workers fault if local politicians want their vote so badly) But this isn't the case here.

  25. edvard2


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    44   12:27pm Mon 19 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike  

    rooemoore says

    I think there is a knee-jerk reaction to blame the unions. I understand those who have legitimate gripes with public unions that have essentially been bribed with excessive benefits packages by politicians. (of course it is not the union workers fault if local politicians want their vote so badly) But this isn't the case here.

    But there is a reason why the right likes to blame unions: Their politicians tell them to. Why? It doesn't take a rocket scientist. Unions have for generations leaned more Democratic and have also contributed money to the Democratic party. So the plan seems to be amongst the GOP to tell their followers that "Its all the union's fault!" in an attempt to try and limit the union influence in politics. So basically they've succeeded in telling their followers that lower wages and lower working safety conditions are "Good" for them.... yes- otherwise they've be in one of those stinkin' unions. Its simply manipulated propaganda, that's all.

  26. Homeboy


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    45   12:28pm Mon 19 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    CaptainShuddup says

    Yup, that's me. I'm over here with my freaking thing doing that stuff I do, to suppress information I know nothing about, from people I never knew existed. Pointing my ridiculously oversize foam finger at Obama.

    I'm clearly no match for Facebook.

    Exactly. You knew nothing about the facts, yet still felt yourself qualified to do a little union-bashing, because, my friend, that IS what you do.

    You can take a swipe at Facebook if that makes you feel good, but I've noticed that you haven't disputed any of the figures.

  27. upisdown


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    46   12:42pm Mon 19 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    Whoops, it seems as though Hostess might not close now. Just heard on the radio that negotiations between the union and management are back on.

    The panic probably pushed their sales into orbit, considering all the news segments showing panicked fattys buying up all the remaining stock of their junk food.

  28. rooemoore


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    47   12:53pm Mon 19 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    edvard2 says

    Its simply manipulated propaganda, that's all.

    Jimmy Hoffa didn't help.

  29. zzyzzx


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    48   12:55pm Mon 19 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    taxee says

    Ho Hos? Sounds like something soon to be made in China and contaminated.

    More like Mexico, where they get cheaper labor and cheaper sugar.

  30. Nobody


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    49   1:35pm Mon 19 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    Homeboy says

    Thank God the real story is making the rounds on facebook, 'cuz the "blame the unions" crowd here sure isn't gonna let anyone in on it.

    OK, so these 10 people's raise drove the company to the ground? The number does not add up. And wouldn't it be in their best interest to keep the company going? So they can get paid more at the inflated salary? We are talking only about $4 million in increased overhead.

    If they are making $20 an hour, the annual salary is more than $40K. $4million divide by 18,000 people will be a little over $200. That is less than 0.6% of the salary each worker. Each worker needs to give up only 0.6% to pay the executive overhead. That is no where near 8%. It is easy to blame the executives. But it does seem that Union could have saved this company.

  31. tatupu70


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    50   4:06pm Mon 19 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    Nobody says

    If they are making $20 an hour, the annual salary is more than $40K. $4million divide by 18,000 people will be a little over $200. That is less than 0.6% of the salary each worker. Each worker needs to give up only 0.6% to pay the executive overhead. That is no where near 8%. It is easy to blame the executives. But it does seem that Union could have saved this company.

    First off, the article said some positions got paid UP to $20/hr. So, I'll assume those are the mechanics, lab techs, or instrument techs. The operator positions were most likely less than that.

    But the real point is--why should the unions keep giving? Did salary positions take a pay cut 4 yrs ago? Why didn't the management take cuts to keep the business going?

  32. leo707


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    51   4:49pm Mon 19 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    Dan8267 says

    I felt a great disturbance in the force as if millions of fat asses cried out in despair and were suddenly silenced.

    I've seen a lot of strange foods, but I've never seen anything to make me believe there's one all-powerful force controlling all fat-asses.

  33. Dan8267


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    52   5:39pm Mon 19 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike  

    leo707 says

    Dan8267 says

    I felt a great disturbance in the force as if millions of fat asses cried out in despair and were suddenly silenced.

    I've seen a lot of strange foods, but I've never seen anything to make me believe there's one all-powerful force controlling all fat-asses.

    Gravity

  34. Homeboy


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    53   10:56pm Mon 19 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    Nobody says

    Each worker needs to give up only 0.6% to pay the executive overhead.

    Why should the workers have to give up ANY of their salary just to pay for a greedy CEO who triples his own salary at the same time he's filing bankruptcy?

  35. Homeboy


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    54   1:43am Tue 20 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    SFace says

    The simple answer is if the ceo leaves, their New ceo will cost 5x more to bring on board given the risk, disrupt business, raise flags to creditor and stakeholders. e union worker leaves, they pay the next in line less. That's just reality.

    You been drinkin'?

  36. CaptainShuddup


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    55   6:48am Tue 20 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    Homeboy says

    Exactly. You knew nothing about the facts, yet still felt yourself qualified to do a little union-bashing, because, my friend, that IS what you do.

    ...and don't let anyone in on it.

    Don't forget, my Mojo is quite powerful magic.

  37. leo707


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    56   9:42am Tue 20 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    Dan8267 says

    leo707 says

    Dan8267 says

    I felt a great disturbance in the force as if millions of fat asses cried out in despair and were suddenly silenced.

    I've seen a lot of strange foods, but I've never seen anything to make me believe there's one all-powerful force controlling all fat-asses.

    Gravity

    Ahhhhh....I don't have a come back for that.

  38. leo707


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    57   9:55am Tue 20 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    SFace says

    The simple answer is if the ceo leaves, their New ceo will cost 5x more to bring on board given the risk, disrupt business, raise flags to creditor and stakeholders. e union worker leaves, they pay the next in line less. That's just reality.

    Well, that is exactly the type of thing that they would do, and yes it is stupid. The problem is that corporate America seems to buy into this idea of CEO entitlement to huge pay and bonuses regardless of if they succeed or fail at their job. Is there any other job, in the world, where someone can make that much money when they suck at their job and royally fuck up a company destroying the livelihoods of hundreds or thousands of others in the process?

    Does that have to be the reality? No.

    What they should do is headhunt the top people who are just out of business school a year or two. Offer them: 1/5 of what the current CEO is making, the opportunity to run a billion-dollar company, a butt-load (of currently worthless) stock options that vest in 5 years, bonuses based on performance (not to exceed 30% of salary). I do not doubt that Hostess would end up with a good list of qualified applicants who have a much better chance of turning the company around; much more motivated to succeed than a CEO who comes in having negotiated the large payout they get when they are either fired or the company fails.

    Oh, yeah, they also should replace anyone who makes more money than the "new" CEO.

  39. tatupu70


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    58   10:11am Tue 20 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike  

    SFace says

    You can say the Board and CEO are friends, but mostly it's a business decision.

    That's where you lose me. How is it good business to give a failing CEO a raise? Or hire a retread CEO that has either been fired or taken a previous company into bankruptcy?

    Why isn't it better to promote a good VP? Someone relatively young. You can't tell me that there aren't lots of these folks that are dying for the opportunity to run a company. And wouldn't require $1MM salaries.

  40. leo707


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    59   11:18am Tue 20 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    SFace says

    Second, you are asking management to: Perform mass restructuring, fend off creditors, fight with vendors who are nervous, negotiate with unions who are nervous, execute compliced business plans, look for a buyer. It is a very stressful time for management. Based on the itinery, I would be asking for huge raise too with the understanding that if I fail, the whole team would be fired. So the fact that the BOD give them the raise meant they "bought in". Several million dollar is sofa change compared to what the stake was. It's not like they have several years, they had a short timetable.

    Aren't the rank-and-file workers needed to run the company as well? Doesn't the company need them to be "bought in" as well?

    Giving some employees a huge pay raise, while giving others a big pay cut is a great way to disincentivise the workers getting the pay cut.

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