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Twinkies, Ding Dongs Maker Hostess Liquidates Following Failure To Resolve Labor Union Animosity

Tyler Durden's picture





 

Hostess Brands, the company better known as the maker of Butternut, Ding Dongs, Dolly Madison, Drake's, Home Pride, Ho Hos, Hostess, Merita, Nature's Pride, and of course Wonder Bread and Twinkies, and which previously survived one multi-year Chapter 11 bankruptcy process, when it operated as Interstate Bakeries, has just made a splash at the NY Southern Bankruptcy court, for the last time, with a liquidation filing. The reason: insurmountable (and unfundable) difference in the firm's collective bargaining agreements and pension obligations, which resulted in a crippling strike that basically shut down the company. In other words, Twinkies may well survive the nuclear apocalypse, but there was one weakest link: the company making them, was unable to survive empowered labor unions who thought they had all the negotiating leverage...  until they led their bankrupt employer right off liquidation cliff. Will attention now turn to that another broke government entity, the Pension Benefit Guarantee Corp (PBGC), which will have to step in to resuscitate some 18,000 pension plans which suddenly vaporized after labor unions took their "negotiating" freedom a step too far.

From the filing:

Beginning on October 21, 2012, the Debtors began implementing the modifications to the CBAs. On November 7, 2012, the Debtors began to receive strike notices from various local unions affiliated with the BCT. On November 8, 2012, the Debtors received a strike notice from the IUOE. Between November 9 and November 13, 2012, various local unions affiliated with the BCT commenced strikes at 12 of the Debtors' bakeries. At another 12 bakeries, picket lines were set up by striking BCT workers, and certain BCT and other unionized workers at those bakeries chose to honor the picket lines by not reporting for work. As a result, production was significantly disrupted at the 24 bakeries impacted by the Strikes; however, many of the impacted bakeries remained operational to varying degrees due to management filling in for production workers and, in some plants, high numbers of employees crossing picket lines.

 

Since the strikes (the "Strikes") were commenced, the Debtors have urged striking employees to return to work. Unfortunately, at this time, thousands of the Debtors' employees continue to participate in or honor the Strikes. As a result, a sufficient number of the Debtors' baking facilities have become inoperable, and the Debtors are no longer able to fulfill customer orders or sell product at their retail stores. Because of the material impairment of the Debtors' business operations, the Debtors will soon lose access to the funding necessary to operate their businesses, and the Debtors will have triggered certain remedial provisions of the final DIP Order. As a result, the Debtors are beginning to take steps to wind down their business  operations, including the relief requested in this Motion.

In other words, the labor unions representing 18,000 workers fought the company, and the unions won... A very pyrrhic victory. Sadly, they are all now out of a job as the unionized victory just happened to lead to the terminal winddown of their employer.

As to the future of the iconic brands, fear not: Hostess' numerous brands will be bought in a stalking horse auction by willing private buyers, however completely free and clear of all legacy labor and pension agreements which ultimately led to the company's liquidation.

Now if only Hostess had raised taxes... (because they tried cutting spending, and liquidation followed).

Finally, those 18,500 new initial jobless claims next week? Sandy's fault.

Full winddown motion:

 

 


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Fri, 11/16/2012 - 09:52 | Link to Comment astoriajoe
astoriajoe's picture

Surely the unions will purchase the assets and restore this faded brand to its former glory! Amiright or what?

Fri, 11/16/2012 - 09:41 | Link to Comment goodrich4bk
goodrich4bk's picture

Most posters here have the mistaken belief that the workers just fucked themselves.  Maybe, but I'll bet dollars to twinkies that a buyer will be found, that the assets will be sold free and clear of all creditor claims (including legacy pension debt) and that NEWCO will hire back most of these workers for the same pay and benefits they were last offered.  The difference will be that NEWCO will be in a much better financial position without all of the vendor debt and DIP financiing, most of which is bloated "professional" fees during their Chapter 11.  As for their pensions, their payout from PBGC will probably be the same, and perhaps even better, than the illusory deal they were offered by a hopelessly insolvent company.

No, my friends, the idiots here were the shareholders who allowed management to strip the company of all value through incompetence and grossly excessive Chapter 11 proceedings.

Fri, 11/16/2012 - 09:52 | Link to Comment Tyler Durden
Tyler Durden's picture

There will certainly be Stalking Horse bidders for the brand names, IP and the factories (the only real assets), and certainly free of legacy liabilities. But there is absolutely no stipulation that says a new buyer will need to retain the existing workforce or unions for NewCo.

The question of whether the PBGC will make whole the union is however very much open, as noted in the post, for the simple reason that yet another festering nest of insolvency will have to be exposed for everyone to see now that this liquidation will be headline news for weeks.

Fri, 11/16/2012 - 10:29 | Link to Comment hardcleareye
hardcleareye's picture

While I agree that there are no guarantees of rehire of existing labor force.  Unless you physically move the production plants, you will be hiring workers from a "local pool", you of course will rehire the experienced workers that are NOT union flag wavers..... hence breaking the union.

The asset may not be the factories, depending on maintenance and investment into the infrastructure, at the end of the day the facilities may be a net liability(decommissioning cost, environmental clean up of the sites, the production equipment has very little resale value).  Your real asset is your brand names, patents and trademarks.

Fri, 11/16/2012 - 09:45 | Link to Comment TrulyStupid
TrulyStupid's picture

Oh great.... now my ding-dong and twinkie will have chinese writing on the package...but I'lll still be able to get em at Wal-Mart.

Fri, 11/16/2012 - 09:59 | Link to Comment d edwards
d edwards's picture

Yeah, Chinese writing and God only knows what kind of toxic materials in it.

Fri, 11/16/2012 - 10:54 | Link to Comment emersonreturn
emersonreturn's picture

...toxic materials in it.

 

same as it ever was...

Fri, 11/16/2012 - 15:49 | Link to Comment Cathartes Aura
Cathartes Aura's picture

Buy Amrkn!!!

Fri, 11/16/2012 - 10:01 | Link to Comment d edwards
d edwards's picture

Yeah, Chinese writing and God only knows what kind of toxic materials in it.

Fri, 11/16/2012 - 09:46 | Link to Comment TrumpXVI
TrumpXVI's picture

Jeez, the union killed the goose that laid the golden ding dong.

Fri, 11/16/2012 - 10:02 | Link to Comment d edwards
d edwards's picture

Twinkies are golden, Ding Dongs are chocolate. :-)

Fri, 11/16/2012 - 09:47 | Link to Comment nick howdy
nick howdy's picture

Go ahead and blame the union for everything not the PE firm..Ripplewood and the Hostess CEOs.

http://www.huffingtonpost.com/2012/11/12/hostess-closing-bakeries_n_2119...

"At that time, the union says, workers' concessions were diverted from their intended purposes and instead "went to executive bonuses and payouts to the hedge funds that own Hostess Brands." Hostess' then-CEO received a 300% raise, according to union claims."

http://www.nypost.com/p/news/business/hostess_bakers_set_to_strike_9xGp5...

"Bakery Union Head Frank Hurt said in September that Hostess is a company “that is controlled by Wall Street private equity and hedge-fund firms, whose sole objective is to maximize their own returns, not rebuild a company for the long haul.”"

http://online.wsj.com/article/SB1000142405270230407200457732399351250605...

"Creditors Say Hostess pay is Questionable"

Let's just see what the CEO's and the PE firm walk away with at the end of all this...

 

Fri, 11/16/2012 - 10:04 | Link to Comment goodrich4bk
goodrich4bk's picture

Bingo, Nick.

The pay and benefit concessions demanded were between 27 and 33%.  How many of us here with families and a mortgage would voluntarily accept that so that management can receive a 300% wage increase?  And those who would do so, have you no pride?  Who else do you so willingly bend over for?

Assume you're making $35k a year with a $1,500 nut for mortgage, taxes and insurance.  Would you agree to accept a 20% wage cut which will only serve to put you in foreclosure and your own bankruptcy?  Why bother?  Why not just sell the house now and move?  I know I'd rather take the quick death than the slow, and it is clear to me that Hostess' management was never in this for the long term.  They haven't changed their distribution or product in decades, nor have they done anything to adapt to increasingly negative customer sentiment concerning their product.  Management was in it just for the money, but some of the posters here apparently believe workers who made the same calculation and came to the same conclusion, ie., they would be better off financially from a failure than a success, are "stupid".

 

Fri, 11/16/2012 - 10:06 | Link to Comment nick howdy
nick howdy's picture

Let's face it, the company was going down anyway and everyone knew it, there was no plan to save anything...Wonderbread, Twinkies, Ho Ho's are going out of style because people just aren't into eating artificial food anymore.

Fri, 11/16/2012 - 10:52 | Link to Comment notbot
notbot's picture

Oh give me a break, Nick.  Some deals don't work out, but it's not the business model Liberals want to make you believe it is.  PE doesn't have a business model to pay a 30% premium to market price to buy a business and then drive it into the ground. 

Step 1: Pay a huge premium to market price and then drive a business into the ground.

Step 2: ???.  

Step 3: PROFIT!

What we need is to eliminate poison pills and staggered boards that insulate over-paid mgmt teams who are bad at running a business.  PE could be then be a proper check on all that if we didn't have so much crony capitalism.

 

Fri, 11/16/2012 - 11:06 | Link to Comment nick howdy
nick howdy's picture

I'm certain Mitt Romney would agree with that.

Fri, 11/16/2012 - 10:13 | Link to Comment hardcleareye
hardcleareye's picture

Excellent post NC, as I read Tyler's article I couldn't help but wonder (no pun intended) what was really going on here....  I am sure with a little more digging there is more, much more, to this story.  I wonder if the union (or the workers) could purchase the assests in the liquidation filing...  after all you can't make this product overseas... welll.....I take that back, maybe you can.

Fri, 11/16/2012 - 15:54 | Link to Comment Cathartes Aura
Cathartes Aura's picture

"this product" being Twinkies?  doubtful "overseas" wants to eat the crap that amrkns were raised to believe is special - and has perhaps contributed size-ably to "amrkn culture" - Twinkie Defense anyone?

Fri, 11/16/2012 - 10:31 | Link to Comment ebworthen
ebworthen's picture

nick howdy - thanks for the post.

This is the story of many American industries.

Bet most of management and ownership were MBA's who never worked a day on the floor.

Fri, 11/16/2012 - 10:51 | Link to Comment nick howdy
nick howdy's picture

Just you wait, you are going to see this everywhere...These CEOs and PEs are going to do this everywhere as a fuck you to the working class...and its all government incentivised. This country will be one giant neo-fuedal sacrifice zone..

Fri, 11/16/2012 - 15:57 | Link to Comment Cathartes Aura
Cathartes Aura's picture

and the looting will continue to be defended by the co-dependents who identify with the looters. . .

thanks for the posts nick.

Fri, 11/16/2012 - 09:51 | Link to Comment AnAnonymous
AnAnonymous's picture

Some 'Americans' lunch on Twinkies.

Fri, 11/16/2012 - 11:05 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Some Chinese citizenism citizens lunch on twice-cooked yak penis in a spicy ginger sauce an umbilical cord broth. Others just wok a dog.

Fri, 11/16/2012 - 11:28 | Link to Comment Temporalist
Temporalist's picture

No, you misunderstood, I said talk the dog for a walk!

Fri, 11/16/2012 - 09:56 | Link to Comment my puppy for prez
my puppy for prez's picture

I'm sorry to spam this thread, but in the spirit of a semi-humorous topic, I am linking to one of the funniest articles I have read in a long time.  I was crying till I laughed!  (The topic is disturbing, but this writer managed to point out the abject absurdity of this DHS "policy" in brilliant satirical style):

DHS AND FBI PRESENT:  YOU MIGHT BE A TERRORIST IF....HOTEL GUEST EDITION:

http://www.blacklistednews.com/The_DHS_And_FBI_Present%3A_You_Might_Be_A...

WARNING:  This is a non-beverage article for the safety of your keyboard!

Fri, 11/16/2012 - 10:58 | Link to Comment forwardho
forwardho's picture

Well worth the side trip. Thanks for beverage warning!

Fri, 11/16/2012 - 10:01 | Link to Comment The Malamute Kid
The Malamute Kid's picture

Why bash the unions?  are you opposed to workers getting a living wage?  This is not some govt workers union, its bakers. What ever happend to Solidarity in this country?  Maybe you want to set the country back to Lewis Sinclairs time.  No more Twinkies?  WTF!  Another American Icon bites the dust.

Fri, 11/16/2012 - 10:19 | Link to Comment Alpha Monkey
Alpha Monkey's picture

Someone forgot to give them the memo that people are becoming educated about stuffing shit down their faces.

Fri, 11/16/2012 - 10:32 | Link to Comment ElvisDog
ElvisDog's picture

Because 3 does not equal 4. If a company earns $3 in revenue per employee, and the employees say "we wont work unless you give us $4 in compensation because we think $4 is a living wage", then guess what? The company is forced into liquidation that's what. "Living wage" is like "pay your fair share". Who gets to say what a "living wage" is?

Fri, 11/16/2012 - 10:50 | Link to Comment IridiumRebel
IridiumRebel's picture

Did you read the article? FAIL.

Fri, 11/16/2012 - 21:18 | Link to Comment Absinthe Minded
Absinthe Minded's picture

I've been an electrician for over 30 years now and I never worked for a union company, nor will I ever. You make your own worth. If you don't like what you're making ask for a raise or find another job. Don't depend on someone else to bitch for you. Oh yeah don't pull the I hope your happy making crap wages, I've done very well for my self.

Fri, 11/16/2012 - 10:08 | Link to Comment Michigan
Michigan's picture

Hostess should sue the unions.

Fri, 11/16/2012 - 10:15 | Link to Comment hannah
hannah's picture

there werent 18,000 union...more like 7,000 wasnt it. union took everyone out...

Fri, 11/16/2012 - 10:18 | Link to Comment Eagle Keeper
Eagle Keeper's picture

This is actually part of Michelle's master plan to end obesity....   

Fri, 11/16/2012 - 10:20 | Link to Comment lostcause
lostcause's picture

 Don't worry! They will start making Twinkies in China very soon!

Fri, 11/16/2012 - 22:23 | Link to Comment monad
monad's picture

Soy-lent Green Twinkies

Fri, 11/16/2012 - 10:20 | Link to Comment rsnoble
rsnoble's picture

Don't worry the new owners will soon face Obama card-check and be unionized as well. LOL.

I only know one Hostess employee and he is a real fucking dick so guess what asshole? Enjoy tent city.  And no, I don't feel that way about all of them.  He probably wouldn't be such a bad guy if he didn't have an overly flirtatious 20 yo daughter and that's as much as I care to say on that.

This case represents the ultimate in stupidity.  I'm sure many of the employees might realize this when they are dumped into an economy that have people fighting over $8hr jobs when they probably coulda made twice that with severly reduced benefits.

On the one hand there is no mistake that companies are greedy and will rape you pay wise as much as they can in most cases which is where unions come in.  On the other hand if you should choose this route let it be known that your set of skills are basically worthless in a free market so therefore your job will always be at risk despite whatever "security" bullshit the union touts.  The only way to really have security is having people offer you a good wage because you are really worth it and you can write your own ticket.

Speaking of security, here's a video that I watch often just as a reminder of our fragile being:

http://www.youtube.com/watch?v=DlMZgIyX0Rs&feature=plcp

 

Fri, 11/16/2012 - 10:20 | Link to Comment Chaos_Theory
Chaos_Theory's picture

Dateline February 15th, 2013--Reuters

After months of deliberations and stalled legal action by the Obama Administration to block Hostess's attempt to liquidate their company, the Department of Labor has announced that the U.S. government has seized the assets of the bankrupt company and will resume business operations in March.  All 18,000 union members who were in limbo will receive back wages, as well as taxpayer guarantees for 150% of their pension obligations.  Additionally, those workers will immediately switch to a public union status and are allowed to enact brilliant government employee initiatives like "Earned Day Off" programs in which workers work an extra hour each day to receive every other Friday off, receive 30-days of paid leave per year, plus all Federal holidays, and placed in the same healthcare program options as all other government workers.  The new government-run Hostess company will change their name to Obama's Glorious Sweet Goodness Treats to reflect the new status and enhance the brand name.  Such iconic brands as Twinkies will only have a color modification...Ding Dongs and Ho Hos will remain the same, with the exception that Ho Hos will be much larger and pop out mini Ho Hos every few minutes. 

Additionally, the International Brotherhood of the Teamsters union has negotiated a new contract with the Obama's Glorious Sweet Goodness Treats company and will receive new benefits such as 150% wage increases, pensions that include taxpayer-funded Malibu mansions, and will be allowed to violently gangbang the firstborn daughter of all private sector taxpayers (however, those women will receive "free" birth control, so it's a win-win).

All hail the glorious leader...FORWARD!

Fri, 11/16/2012 - 10:36 | Link to Comment forwardho
forwardho's picture

Bravo! CT.

Fri, 11/16/2012 - 10:49 | Link to Comment IridiumRebel
IridiumRebel's picture

I just spit out my coffee......

Fri, 11/16/2012 - 10:22 | Link to Comment Stuck on Zero
Stuck on Zero's picture

Labor unions are amazingly suicidal.  They strike against companies that hire union labor.  They do not picket or protest or try to shut down companies that export jobs or hire illegal aliens. They do not protest subsidized imports and unfair trading practices that have destroyed their membership.  Nut cases.

 

Fri, 11/16/2012 - 10:24 | Link to Comment Bagbalm
Bagbalm's picture

Don't worry about the union leaders. They represent plenty of other shops and aren't going to be out of work.

This is what happens when the first union guy leaves the shop floor and becomes a professional thugster.

Fri, 11/16/2012 - 10:24 | Link to Comment NEOSERF
NEOSERF's picture

In a nation where fully a third of its population is obese where a Twinkie maker goes bankrupt tells you how bad it is.  USPS, FHA, Hostess, American Airlines, Solyndra and countless others which are teetering on insolvency shows how bad things really are.

Fri, 11/16/2012 - 10:25 | Link to Comment monopoly
monopoly's picture

To blame management for all the failures is ludicrous. Not taking their side but the facts are corporations and America cannot afford these pensions and health benefits anymore. Consumers are looking for value, we do not want to pay more so less revenue. Pensions and health benefits in most industries are now archaic.These benefits are from another era that does not exist. It has to change and the unions do not understand the dynamics at play. All about union power, and it has to stop. No matter if it is Hostess or the U.S. Govt. We cannot afford to continue on this track. When will the unions figure that out? And of course there has been corporate and CEO theft. But to post that it is the CEOs fault to liquidate a company. Nope, does not compute.

Fri, 11/16/2012 - 10:37 | Link to Comment ebworthen
ebworthen's picture

"These benefits are from another era that does not exist."

You mean that era where people could afford to go to the Doctor and retire at 65?

Fri, 11/16/2012 - 20:40 | Link to Comment Absinthe Minded
Absinthe Minded's picture

The privately owned company I work for was bought by Owens Corning. We had the best benefits imaginable, I thought. $75 a week for a family plan that covered everything with no copays. Now with OC we have the typical crappy health plan every one else has been used to. Sorry, but it sucks.Out of pocket used to be $3600 now it's $8500. Now I know why people strike. My small private company could afford great benefits, they should get better with the purchasing power of a huge corporation. Nope, just another top heavy shitty corporation. Everything we do now has to go through a bunch of dumb ass engineers who have to put their two cents in to justify their existence. Talk about half witted, slow moving, red tape bound beauracracy. This company is a joke. God help us.

Fri, 11/16/2012 - 10:26 | Link to Comment NEOSERF
NEOSERF's picture

Bring it on...18,000 unemployed workers means I have to work an extra 3 hours a week to support you but good work on shutting down those plants...hope you can get a Starbucks job making those little pastries.

Fri, 11/16/2012 - 10:31 | Link to Comment Crtrvlt
Crtrvlt's picture

right and this has nothing to do with the fact that their revenues have fallen  from about 2.8 bln in 2008 to 2 bln now or the fact that their margins have collpased because of rising input costs

 

either way, less fat people and the life of medicare just fell a little more

Fri, 11/16/2012 - 10:41 | Link to Comment Monedas
Monedas's picture

The Hostess, Dolly Madison, wanted his Ding Dong .... all she got was a Twinkie !  She was one mad woman !

Fri, 11/16/2012 - 10:37 | Link to Comment Mad Mad Woman
Mad Mad Woman's picture

Hostess was Bain-ed. Insurmountable debt piled on by owners: private equity firms & hedge funds. Owners loaded up the debt & cashed out millions of dollars and put the money right into their own pockets. Hostess was Bain-ed!!

Fri, 11/16/2012 - 10:42 | Link to Comment surf0766
surf0766's picture

"Workers of the world unit isn't just a slogan anymore it is a way we are going to have to do business." /s

 

Asswipes !

Fri, 11/16/2012 - 10:43 | Link to Comment Eagle Keeper
Eagle Keeper's picture

I see this as the visible start of a major inflation cycle. The input costs are now catching up to their maximum that could be absorbed before raising end prices to consumers. Gvt has done a pretty good job so far of masking the enevitible. Sure, wages got to start going up soon but mfg's margin has been so thin for so long they either need to raise prices or shut their doors. Either way results in the same outcome, especially for the first to drop. Hold on to your hats, inflation is about to shift into a higher gear and there's no reverse...

Fri, 11/16/2012 - 10:45 | Link to Comment QE49er
QE49er's picture

This may be the Archduke Ferdinand moment of WWIII

Fri, 11/16/2012 - 10:45 | Link to Comment surf0766
surf0766's picture

Now all the walmart workers will walk out Black Friday. Fire them all. Someone else will do the job

Fri, 11/16/2012 - 10:46 | Link to Comment Eagle Keeper
Eagle Keeper's picture

Self check...

 

Fri, 11/16/2012 - 11:02 | Link to Comment semperfi
semperfi's picture

its time for all the TAXPAYERS to walk out and send a message to the parasites that says FUCK YOU

Fri, 11/16/2012 - 10:47 | Link to Comment Bastiat
Bastiat's picture

   Unions will send a local on a kamikaze strike to preserve the collective national bargaining power.   Concessions are contagious. 

 

Fri, 11/16/2012 - 10:45 | Link to Comment Mad Mad Woman
Fri, 11/16/2012 - 13:48 | Link to Comment Matt
Matt's picture

404 - broken link. 

Fri, 11/16/2012 - 10:45 | Link to Comment edifice
edifice's picture

Like Woody Harrelson in "Zombieland," all I want is a Twinkie.

 

Not really.

Fri, 11/16/2012 - 10:46 | Link to Comment Monedas
Monedas's picture

If I knew this was coming .... I would have voted for Romney !

Fri, 11/16/2012 - 11:00 | Link to Comment Chaos_Theory
Chaos_Theory's picture

All Robot would have done is ensure the bones were picked clear, and production costs lowered by the miracle of offshoring.  That would still leave you with 18,000 less American jobs, toxic sweet products, and little Chinese pubes packed into my Ding Dongs!

The REAL horror is the irony of what this does to the great American Dream....by which I mean the dream of living in your mancave for two-years on the unemployment insurance dime, while doing nothing but mastering COD Back Ops II, drinking cheap American beer, smoking Colorado's finest, and eating too many Ding Dongs and Twinkies

Who says the American Dream isn't dead?  Liars...that's who. 

Fri, 11/16/2012 - 10:48 | Link to Comment icanhasbailout
icanhasbailout's picture

If the workers don't lynch their union leaders, then they deserved what they got.

Fri, 11/16/2012 - 11:00 | Link to Comment semperfi
semperfi's picture

Hope & Change  vs.  Rope & Chains

 

Fri, 11/16/2012 - 10:50 | Link to Comment 2discern
2discern's picture

A moment of silence is in order. Twinkies will live forever in the hearts (and stomachs) of true Americans.

Fri, 11/16/2012 - 10:52 | Link to Comment dark pools of soros
dark pools of soros's picture

ZIRP: the poison pill for pensions... thus unions...    don't think this isn't part of the plan

collateral damage of defunct companies be damned

 

 

Fri, 11/16/2012 - 10:54 | Link to Comment hampsterwheel
hampsterwheel's picture

Come on people, you have to start thinking like the system - this will not be allowed to stand - there is no free market - companies cannot simply fire people or raise prices, what are you thinking.....

Here is what will happen - the Judge will throw out the case - the board of Directors will be replaced and the Union will get its demands and everyone will go back to work -

You seriously don't think the system will allow a default of anykind - Greece cannot get out, nor can the twinkie -

Fri, 11/16/2012 - 13:55 | Link to Comment Matt
Matt's picture

Are there hundreds of billions of dollars in Credit Default Swaps for Hostess? If not, then they are certainly allowed to be liquidated.

No Twinkies, but Wonder Bread, Jos. Louis and some other favourites live on in Canada:

http://www.theglobeandmail.com/globe-investor/snack-giant-hostess-shutte...

Fri, 11/16/2012 - 10:59 | Link to Comment killallthefiat
killallthefiat's picture

Sometimes I read interesting news articles to the kids.  This morning I read this one and my 9 year old daughter. She said, recognizing the value of scarcity, "We better go get some today."  From the mouths of babes, the Ben Bernank could learn a thing or two.

Fri, 11/16/2012 - 11:03 | Link to Comment chenn
chenn's picture

Well, at leat now we know what the end of the Mayan calendar represents.  No more twinkies.

Fri, 11/16/2012 - 11:04 | Link to Comment j0nx
j0nx's picture

I would gladly accept being shitcanned as an ordinary worker if it meant that the greedy board and executives were also out on the street looking for a new job with that big black mark on their resume. GL finding a job as another executive if you came from Hostess. The airlines ought to be doing the same thing. No more fucking austerity for the average worker until senior corporate executive pay comes in line to 20x average worker pay where it belongs. This blaming unions shit for the failings of companies needs to stop. Corporate greed and asset stripping at the senior level is what causes these companies to fail and the union demands are just a convenient excuse. The simple fact is that the wall street types/corporate execs want everyone else but them to accept austerity and the workers have had enough. Burn the mofo down. Do it to all companies that play by these rules.

Fri, 11/16/2012 - 11:08 | Link to Comment Seasmoke
Seasmoke's picture

the higher up the ladder, the harder the fall

Fri, 11/16/2012 - 11:09 | Link to Comment Monedas
Monedas's picture

Who's happy ?  Bloomberg and Michelle are happy ! Knock on wood !   Get ready for brown rice snack cakes filled with creamed spinach !

Fri, 11/16/2012 - 11:09 | Link to Comment Dr. Venkman
Dr. Venkman's picture

Your Honor -- the Debtors' counsel, Debtors' Co-Counsel, Creditors Committee Counsel and Co-Counsel, Counsel to Secured Creditors/DIP Lender, Financial Advisors to the Debtors, Financial Advisors to the Creditors Committee, etc. are shocked that the plan were worked on for 10 months lasted a mere 25 days. Please consider this an emergency motion to increase the carveout for professional fees lest we attorneys be forced to feed our families with the Debtors unsold inventory. Life in the SDNY is expensive.

Fri, 11/16/2012 - 11:11 | Link to Comment EverythingsSuper
EverythingsSuper's picture

This is actually a GOOD thing! Hostess made some of the most unhealthy, GMO food in the USA. And Wonder bread?!?! I mean common, only Americans can eat something that resembles tasteless soft cotton mush made with from GMO Dwarf wheat that causes addiction (google it). I'll take my German pumpernickel or my Latvian real dark, yeast bread ANY time over any twinkie crap.

Fri, 11/16/2012 - 11:11 | Link to Comment Frank N. Beans
Frank N. Beans's picture

this leaves the door open for another company to come out with their own Twinkie knock-off.  Just don't call them Twinks. 

 

Fri, 11/16/2012 - 11:13 | Link to Comment hero HNL
hero HNL's picture

Is the company seriously going away???????

 

I really enjoyed them since I was a kid......will miss them a lot.

 

 

hero

Fri, 11/16/2012 - 11:22 | Link to Comment resaci
resaci's picture

 

 

 

Life in the UAW (probably any big union)

 

 

  • 20% - conscientious hard workers
  • 60% - follow the leader - don't ask me to think
  • 20% - USELESS FUCK-OFFS (most union reps from this group)

Union reps spend their time bailing out the 20% FUCK-OFFS

Management spends their time dumping ALL THE WORK on the 20% - conscientious hard workers until they TURN INTO THE OTHER 80%

 

Fri, 11/16/2012 - 11:22 | Link to Comment gwar5
gwar5's picture

Don't be a ding dong. Hoard twinkies before they're gone.

 

Sad to see this happening. Hostess started during the Depression, now it's gotten too tough. Employees are hitting Wal-Mart next. At least WMT saves the average family $3000. Gov can't do that.

 

Fri, 11/16/2012 - 11:27 | Link to Comment Monedas
Monedas's picture

Meats, sweets and treats .... advanced Anglo brains don't need all that Slavic fiber and German animal feed !

Fri, 11/16/2012 - 11:28 | Link to Comment KCMLO
KCMLO's picture

I have a good friend nearing retirement age that was one hit by this.  I don't know much about the company and how they operated but I did get to see first hand what they did to him:

1.  Admittedly he was decently well paid when he was even able to work, made about $20 an hour loading trucks.  However, the union constatnly blocked him from being able to work full hours. 

2.  His exact position opened up at a bakery within a mile of his house, since the union required more senior people to have first dibs on the job he had to quietly train 3 (THREE!) more senior employees trying to take the position.  Each of the three were unable to perform the duties of the position.  Namely this would be mental math, inventory, and loading trucks for delivery.  That astonished me.

3.  At every step of the way the union was constantly obstructive.  I never once heard him complain about the company, not a single time, it was always the union.

4.  The union even kept them in the dark about these proceedings and that they were heading over the cliff.  His word from the union as of 48 hours ago "We're still negotiating."

Fri, 11/16/2012 - 11:35 | Link to Comment indio007
indio007's picture

Unions are hardly the problem. The problem is they changed their product and it sux. Not to mention charging 2 times as much as their competitors for an inferior product.

 

Hotess cupcakes are all dried out and barly taste like chocolate. Twinkies are bland as shit and the frosting isn't fluffy anymore. It's more like paste. 

Fri, 11/16/2012 - 12:12 | Link to Comment Monedas
Monedas's picture

Maybe union bosses could start up their own snack company .... non-union shop, of course !  LOL   (Unions are) Proletarian, brain dead Zimbabwian Socialist filth !  

Fri, 11/16/2012 - 12:43 | Link to Comment De minimus
De minimus's picture

Duuuuh.... Maybe because they are union.....?

I'm sure that the company's objective was to provide a substandard product, at twice the price of the competition, so it would sit on the shelves and not sell. That sounds like a money making strategy to me!

Why don't you shove that other free foot in your mouth while you're at it.

Perhaps you should re-educate yourself since apparently the first attempt didn't take. Hint: Read old books published before the 1930's and then ease into the modern ones.

Fri, 11/16/2012 - 19:59 | Link to Comment indio007
indio007's picture

Denial is more than a river in Egypt.

Fri, 11/16/2012 - 12:21 | Link to Comment monad
monad's picture

Monday: Michelle ate 12 servings of Twinkies.

Wednesday: The Royal pulse is normal again.

Thursday: Twinkies will no longer be made. The responsible parties will be punished accordingly.

 

Fri, 11/16/2012 - 21:49 | Link to Comment Pinocchio
Pinocchio's picture

How pissed off are the guys in Colorado and Washington.... HORRIBLE timing.... Right after they approve recreational marijuana use.....

Sun, 11/25/2012 - 07:20 | Link to Comment wandybrad
wandybrad's picture

nions are hardly the problem. The problem is they changed their product and it sux. Not to mention charging 2 times as much as their competitors for an inferior product.
law school admission essays

Sat, 11/17/2012 - 11:24 | Link to Comment monad
monad's picture

They can take our Twinkies, but they'll never take our Cheetohs! CHEEEETOOOOOOHS!!!!!!!!!!!!!!!

Mon, 11/19/2012 - 03:56 | Link to Comment cgagw
cgagw's picture

The Aiguilles Grises route is, perhaps, the most natural way to climb Mont Blanc as it uses no mechanical transport, However,north face outlet berkeley the approach to the Gonella hut on a stone covered glacier is long and tiring, and the altitude gain on the summit day is 1700m.The Aiguilles Grises route is, perhaps, the most natural way to climb Mont Blanc as it uses no mechanical transport, However, the approach to the Gonella hut onnorthface outlet a stone covered glacier is long and tiring, and the altitude gain on the summit day is 1700m.

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