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Good bye, Twinkie – Hostess Brands liquidates

By tvgnus   Follow   Fri, 16 Nov 2012, 5:47am   4,542 views   63 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. zzyzzx Follow Befriend (9) 412 threads 4,116 comments Baltimore, MD

   24   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.

2. zzyzzx Follow Befriend (9) 412 threads 4,116 comments Baltimore, MD

   25   11:13am Fri 16 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike   WalMart already sells it's own Twinkee clone. No union thugs needed!

3. zzyzzx Follow Befriend (9) 412 threads 4,116 comments Baltimore, MD

   26   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.

4. upisdown Follow Befriend 631 comments

   27   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?

5. CaptainShuddup Follow Befriend (1) 247 threads 4,683 comments

   28   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?

6. rooemoore Follow Befriend 41 threads 905 comments Ross, CA

   29   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.

7. thunderlips11 Follow Befriend (13) 50 threads 2,626 comments Premium

   30   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.

8. CaptainShuddup Follow Befriend (1) 247 threads 4,683 comments

   31   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.

9. Scagnetti Follow Befriend (1) 15 threads 300 comments

   32   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.

10. rooemoore Follow Befriend 41 threads 905 comments Ross, CA

    33   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.

11. taxee Follow Befriend 88 threads 457 comments El Cerrito, CA Premium

    34   2:32pm Fri 16 Nov 2012   Share   Quote   Permalink   Like (2)   Dislike (1)   Protected   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?

12. errc Follow Befriend (7) 29 threads 1,204 comments 31 male Premium

    35   2:37pm Fri 16 Nov 2012   Share   Quote   Permalink   Like (2)   Dislike (1)   Protected   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,,,,,

13. elliemae Follow Befriend (25) 413 threads 6,978 comments Saint George, UT elliemae's website

    36   1:27pm Sat 17 Nov 2012   Share   Quote   Permalink   Like (2)   Dislike (1)   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...

14. zzyzzx Follow Befriend (9) 412 threads 4,116 comments Baltimore, MD

    37   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.

15. zzyzzx Follow Befriend (9) 412 threads 4,116 comments Baltimore, MD

    38   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.

16. elliemae Follow Befriend (25) 413 threads 6,978 comments Saint George, UT elliemae's website

    39   9:18am Sun 18 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike   If they had made their fare taste like food it would have helped.

17. Homeboy Follow Befriend 13 threads 1,480 comments

    40   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

18. Dan8267 Follow Befriend (16) 761 threads 7,688 comments Boca Raton, FL Premium

    41   1:31am Mon 19 Nov 2012   Share   Quote   Permalink   Like (3)   Dislike   Protected   I felt a great disturbance in the force as if millions of fat asses cried out in despair and were suddenly silenced.

19. lisalisa Follow Befriend 1 threads 79 comments New Lenox, IL

    42   4:37am Mon 19 Nov 2012   Share   Quote   Permalink   Like   Dislike   Do I hear the Sound of "Little Debbie" to the rescue?

20. CaptainShuddup Follow Befriend (1) 247 threads 4,683 comments

    43   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.

21. edvard2 Follow Befriend 34 threads 2,098 comments

    44   12:08pm Mon 19 Nov 2012   Share   Quote   Permalink   Like   Dislike   PS: Obama won. Get used to it.

22. rooemoore Follow Befriend 41 threads 905 comments Ross, CA

    45   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.

23. edvard2 Follow Befriend 34 threads 2,098 comments

    46   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.

24. Homeboy Follow Befriend 13 threads 1,480 comments

    47   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.

25. upisdown Follow Befriend 631 comments

    48   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.

26. rooemoore Follow Befriend 41 threads 905 comments Ross, CA

    49   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.

27. zzyzzx Follow Befriend (9) 412 threads 4,116 comments Baltimore, MD

    50   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.

28. Nobody Follow Befriend 10 threads 272 comments San Jose, CA

    51   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.

29. tatupu70 Follow Befriend (3) 15 threads 5,618 comments

    52   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?

30. leo707 Follow Befriend (12) 10 threads 3,516 comments Oakland, CA leo707's website Premium

    53   4:49pm Mon 19 Nov 2012   Share   Quote   Permalink   Like   Dislike   Protected   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.

31. Dan8267 Follow Befriend (16) 761 threads 7,688 comments Boca Raton, FL Premium

    54   5:39pm Mon 19 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike   Protected   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

32. Homeboy Follow Befriend 13 threads 1,480 comments

    55   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?

33. SFace Follow Befriend (2) 60 threads 1,298 comments Premium

    56   1:24am Tue 20 Nov 2012   Share   Quote   Permalink   Like   Dislike   Protected   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. Line of credit frozen, covenent breach. union worker leaves, they pay the next in line less. That's just reality.

34. Homeboy Follow Befriend 13 threads 1,480 comments

    57   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'?

35. CaptainShuddup Follow Befriend (1) 247 threads 4,683 comments

    58   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.

36. leo707 Follow Befriend (12) 10 threads 3,516 comments Oakland, CA leo707's website Premium

    59   9:42am Tue 20 Nov 2012   Share   Quote   Permalink   Like   Dislike   Protected   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.

37. leo707 Follow Befriend (12) 10 threads 3,516 comments Oakland, CA leo707's website Premium

    60   9:55am Tue 20 Nov 2012   Share   Quote   Permalink   Like   Dislike   Protected   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.

38. tatupu70 Follow Befriend (3) 15 threads 5,618 comments

    61   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.

39. SFace Follow Befriend (2) 60 threads 1,298 comments Premium

    62   10:44am Tue 20 Nov 2012   Share   Quote   Permalink   Like   Dislike   Protected   tatupu70 says 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. How I like to be a fly on the wall (of the Boardroom). But I try to think like that fly. Hindsight is 20/20. First, the Board's neck is on the line too. 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. You really think a VP turn CEO can do all of the above? Only an insane BOD will take that chance. A white knight CEO would ask for 5M upfront minimum (or likely negotiate some massive payout upon release to ensure the time will be compensated fail or not) to take the job and they would have to pay just as much to bring several more people on Board at the white knights request (and have the same terms), even more expensive than "buying in". So you will have the same outcome, now instead of cries of 3x pay, the cost is exponentially more. So, I can see it from the BOD's perspective. It only seems outrageous because it failed. Obviously this is just my opinion and the way i ses things shaking out, fair or not.

40. leo707 Follow Befriend (12) 10 threads 3,516 comments Oakland, CA leo707's website Premium

    63   11:18am Tue 20 Nov 2012   Share   Quote   Permalink   Like   Dislike   Protected   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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