This page has been archived and commenting is disabled.

US Tries To Wrest Control Of Hostess Liquidation As Management Seeks To Pay $1.75 Million In "Incentive" Bonuses

Tyler Durden's picture




 

The Hostess bankruptcy liquidation, the result of a bungled negotiation between the company, its equity sponsors, its striking workers, and the labor union, over what has been defined as unsustainable benefits and pension benefits, is rapidly becoming a Ding Ding farce. The latest news in what promises to be an epic Chapter 22 fight is that the judge, pressured by various impaired stakeholders, among which none other than the US trustee, is that the bankruptcy Judge Robert Drain, who has previously presided over such Chapter 11 cases as Loral, RCN, Cornerstone, Refco, Allegiance Telecom, Delphi, Coudert Brothers, Frontier Airlines and Star Tribune, has ordered the company and its unions to seek private mediation to attempt averting what the company has already said is an inevitable unwind of operations.

Per Reuters, "Hostess, its lenders and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) agreed to mediation at the urging of Bankruptcy Judge Robert Drain of the Southern District of New York, who advised against a more expensive, public hearing regarding the company's liquidation. "My desire to do this is prompted primarily by the potential loss of over 18,000 jobs as well as my belief that there is a possibility to resolve this matter," Drain said." Sadly, this latest step will almost certainly lead to nothing constructive as it merely extends a status quo which already proved to be unresolvable.

What makes a mediation improbable is that the antagonism between the feuding sides has certainly hit a level of no return:

Several unions also objected to the company's plans, saying they made "a mockery" of laws protecting collective bargaining agreements in bankruptcy. The Teamsters, which represents 7,900 Hostess workers, said the company's plan would improperly cut the ability of remaining workers to use sick days and vacation.

In the off chance that mediation does lead to a reconstruction of the failed company it may ironically benefit from the closeout sale of its products as confused Americans hoarded Twinkies, Ding Dongs and Ho Hos in hopes of selling them on Ebay as collectible items with huge marks up, something we warned previously will fail. Regardless, the firesale will lead to a surge of cash in the company's coffers, which will then lead to a scramble over how it is divided.

Then comes the question of whether or not someone steps up in the liquidation process and buys the company in part or whole. Here we learn that Grupo Bimbo, long expected to be the natural suitor for at least the firm's trademarks and IP, will not participate in said process. Hostess CEO Rayburn said Grupo Bimbo won’t be a potential buyer for the bankrupt baker. “One misconception in the market is that Bimbo would be a buyer and bakery leadership told us in several plants that Bimbo would come in and buy, which is absurd,” Rayburn said in an interview with Bloomberg Television. Rayburn cited Bimbo’s agreement with the U.S. Justice Department to sell some Sara Lee brands in order to complete its acquisition of Sara Lee’s North American bakery business. “Due to antitrust, it would never happen,” Rayburn said.

More to the point, and as we predicted on Friday, if there is an outright purchase of the company, it will be a standalone entity, without its unions: Hostess will draw strategic buyers and private-equity investors for its brands, Rayburn said, without naming potential bidders. The company is “more attractive” to buyers without the unions, he said. In other words, if the Union had hoped that their workers would be retained by the purchasing entity, their dreams just got shattered.

But while the Union may be sad, it is about to add another emotion to its arsenal: blind fury. Because it is here that things get truly surreal. As the US Trustee, a Justice Department official responsible for protecting creditors, disclosed, as part of the wind down of Hostess, wants to pay as much as $1.75 million in incentive bonuses to 19 senior managers during the liquidation.

This is just part of the millions to be spent imminently on the wind down:

The process requires “intensive” planning, staffing and funding, the company said. A fire-sale liquidation would damage equipment and result in improper disposal of waste materials.

 

It’s “not a simple matter of turning off the lights and shutting the doors,” Hostess said in court papers.

 

The baker estimated that shutting the plants will cost $17.6 million in the next three months. The plants have about $29 million worth of excess product ingredients, Hostess said.

 

About $6.9 million will be spent to close depots, while $8.8 million will be used to idle retail stores and $8.1 million will go to shutting corporate offices, according to a court filing. Perishable baked goods at retail stores will be sold at going-out-of-business sales, donated to charity or destroyed, Hostess said.

Most importantly, however, is the question how one explains to 18,500 workers who are already out and looking for jobs that the management team which was just as responsible for crushing the company deserves on average $92,000 each in "incentive bonuses, is anyone's guess and one does wonder what safety precautions said management team may have taken to protect from what is certain to be the collective wrath of its former workforce.

Naturally, the immediate outcome of this rather obscene demand, which may fly in a Chapter 11 KERP proposal but hardly is tenable in a liquidation proceeding, is that said US Trustee is now seeking to take control of the liquidation away from the company. As BBG reported earlier, "U.S. Trustee Tracy Hope Davis asked the judge to convert the case to a Chapter 7 from Chapter 11 bankruptcy, based partly on the company’s intent to pay bonuses, and appoint a trustee to supervise the wind-down."

But wait, it gets better: because it is quite likely that should an emboldened US Trustee get her wishes granted, will push to continue operating Hostess as a going concern, potentially with a court appointed, and US Trustee selected management team.

In essence this could result in a stealth nationalization of the junk food maker, which would preserve the jobs of the workers for the time being, but crush the balance of the capital structure, i.e., secured and unsecured creditors.

Impossible, you say? It has happened, to a big extent, before. Recall a certain bankruptcy case of one General Motors, where the claims of creditors were primed by those of the labor unions.

Granted, such a perversion of the bankruptcy process would be historic, but in a country in which everyone is to blame for everything, and in which property rights are becoming a very nebulous concept, we would certainly not be surprised if the US government ends up "bailing out" Hostess by a mandatory flipping the capital structure, over the cries of the company's creditors, further pushing the country into the twilight Banana zone.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 11/19/2012 - 18:42 | 2997166 walküre
walküre's picture

Unit labor cost? Why do I pay a "good" lawyer $400/hour upwards? Why is my medical bill huge? Why are my prescription meds so expensive? Where is the "unit labor" cost there? That isn't the issue because Law, Health and Pharma are big lobbyists in Washington.

If you want Chinese slave labor, then give me Chinese medication prices and Chinese doctor fees. Chinese lawyer fees and so on.

Do you understand where this logic is going?

The race to the bottom has got to stop. Even if you're independently wealthy, your quality of life is directly affected by those living around you.

Mon, 11/19/2012 - 19:10 | 2997251 spastic_colon
spastic_colon's picture

i suppose you're right.....lobbyists, lawyers etc have a direct or indirect affect on total cost of goods sold, the decisions made in washington ultimately filter down to the end user, why not tack on some collectively bargained "fixed" labor cost, regardless of productivity and/or performance for good measure.  We can always recalculate core CPI and PPI so no one's the wiser.

Mon, 11/19/2012 - 19:27 | 2997298 Whoa Dammit
Whoa Dammit's picture

Just about every U.S. company is worth more without the Wall Street debt that has been added to their bottom line ever since the  late 1970's when buyouts started to become rampant. What we are seeing is the end game of that financing,wherein the government has to nationalize companies in order to keep the average citizen working (instead of rebelling). Face the truth: this problem was not caused by private sector unions. 

Mon, 11/19/2012 - 20:52 | 2997543 moroots
moroots's picture

I wonder why the time period you reference happens to be the exact same as the decision to move to a fiat monetary system.  Who's decision was that?  Oh yeah, government's.  Crazy how that works.

Mon, 11/19/2012 - 19:48 | 2997362 MachoMan
MachoMan's picture

So you think that you have to pay a lawyer that much because of lobbying?  The reason why your medical bills cost so much is because of insurance...  You can go to a shit doctor or a good doctor and they all cost a lot...  not so much with lawyers or accountants.  Individual lawyers set their own fee schedule based upon a non-insurance market (and a saturated one at that).  Medical professionals look at what the maximum insurance payment for a particular procedure is and add 50% to it to determine their fee schedules...  [this also applies regarding the "necessity" of the professions...  medical being vastly more necessary]

Mon, 11/19/2012 - 21:10 | 2997574 dark pools of soros
dark pools of soros's picture

where is the globalization of pharma??  no lobbying there right? unsafe right??  as we get fed dogshit junk food and lead candy from China

Mon, 11/19/2012 - 22:06 | 2997690 tenpanhandle
tenpanhandle's picture

I think that was junk shit dogfood.

Tue, 11/20/2012 - 01:35 | 2998006 Oldwood
Oldwood's picture

If you want to stop your race to the bottom you had better close the barn door on "free trade". We will all be working for chinese wages if we have to compete with chinese wages. Only a fool would think that we can keep wages artificially higher than the rest of the world while competing with them.The only systems that can are those that do not compete, like government employees which as a pro unionist, you believe is just great, even if they are being paid by people earning substantially less.

Mon, 11/19/2012 - 18:14 | 2997039 walküre
walküre's picture

Here is what the union should do. Seize the operating assets immediately. Move into the factories and lock management out. Negotiate the sale of products among other unions and set a new standard for "Made in America" and "Sold to Americans".

Take a chapter from the playbook of workers and unions during the Industrial Revolutions. The enemy today is just as callous as the Industrials were at that time.

If all fails, torch and pillage the operating asset to guarantee there will not be a "sale" without union participation.

Do as they do, not as they say.

Mon, 11/19/2012 - 18:24 | 2997088 gmrpeabody
gmrpeabody's picture

Another useful idiot!

Mon, 11/19/2012 - 19:05 | 2997233 Matt
Matt's picture

Here's an alternative; the unionized laborers could get together, form a company, and bid on the assets in the bankruptcy auction like everybody else. If they win, then they can collectively own the company as a co-op. Anyone who wants to work at the company, must buy in one share in the company.

You may laugh and dismiss this, but it has happened. A sawmill in my area did this, although there were a lot fewer workers involved, maybe 250. You need $10,000 to buy in to get a job there, as far as I understand.

Mon, 11/19/2012 - 21:12 | 2997578 dark pools of soros
dark pools of soros's picture

this is really the playbook that this country needs to head towards.. and also burn federal government that still protects industries like pharma from being globalized or localized

 

Mon, 11/19/2012 - 23:15 | 2997823 MeBizarro
MeBizarro's picture

US Pharma workforce is being globalized in a big way.  Just look at US large pharma headcounts or where they have been making investments in R&D, sales, and construction.  There is certainly some still moderate investment in the U.S. but you are seeing a ton in China, Brazil, and several other countries too.  

Tue, 11/20/2012 - 01:47 | 2998018 Oldwood
Oldwood's picture

Yes, own your job instead of renting it!

Mon, 11/19/2012 - 19:27 | 2997300 grunk
grunk's picture

That would create a strong investment climate.

Mon, 11/19/2012 - 19:38 | 2997334 Offthebeach
Offthebeach's picture

The market is glutted with product. Even at its price point Wonder Bread six. Sweet cakes are glutted, and not growing. You can't raise prices. You have a old going out of style product. I doubt there is any more improvements in bakery technology save total automation, but that clashes with the union.

So, no one NEEDS those bakeries or workers even if the bakeries are free and the union works for zero dollars an hour.

Taking and trashing the plants will give the company an insurance check. They'd like that. Then they can scrap the metal.

Other than that, the union has a strong hand. Maybe Obama can buy the Twinkies, send them to schools then thrown out as unhealthy. Cash for cupcakes.

Mon, 11/19/2012 - 23:46 | 2997869 Mary Wilbur
Mary Wilbur's picture

Panara's employees bake their bread daily on the premises of their restaurants.

Tue, 11/20/2012 - 01:39 | 2998012 Oldwood
Oldwood's picture

That would require them to take initiative and they are only really good at standing around holding signs and drinking coffee. You really would vote for Mao, would't you.

Tue, 11/20/2012 - 03:27 | 2998079 W T Effington
W T Effington's picture

Ohh man,   Spoiled little brats acting like spoiled little brats. I guess most of you union people really do believe all of that collectivist propoganda from the union bosses. You suggest taking your ball and going home. Nothing wrong with that except that you don't own the ball !!!! You can't win the game so you want to walk over and stick a knife in the ball so no one else can play. You literally just suggested that the union workers destroy the chance for anyone else to use those productive assets because the union isn't getting their way. The epitome of selfishness. Bitches and Hoes, man. Bitches and Hoes.

Tue, 11/20/2012 - 04:20 | 2998111 Rogue Trooper
Rogue Trooper's picture

You are late to the party.... that sounds like Syndicalism. A true workers paradise and utopia surely beckons - this time. Confederations of collectivised trade unions and industrial unions eliminating the capitalist, risk takers and the pricing mechanism democratically deciding how many iphone 5's, tractors and toilet rolls we will need - DPRK it's only a matter time.  What could possibly go wrong?

/fuckin' socialist ... they now haunt ZH

'isim's we just need less of em!

Mon, 11/19/2012 - 18:14 | 2997040 Innisfree
Innisfree's picture

I'm actually for the management receiving bonuses. It's really just beginning. Atlas has shrugged.

Mon, 11/19/2012 - 18:16 | 2997053 fonzannoon
fonzannoon's picture

Yeah I actually agree. Lets get the party started.

Mon, 11/19/2012 - 23:57 | 2997890 scaleindependent
scaleindependent's picture

Fonzanoob and Innispee

Your hate makes you into an idiot.

Let me explain. Although I agree unions should share the blame, it looks like the execs are the greedy bastards that ruined the company. In the process, they make out like bandits by giving themselves 100% or more raises while declaring bankruptcy and then after declaring bankruptcy they want a bonus or an incentive? Please...

 

What everyone here is ignoring are the creditors and shareholders of the company. Any remaining money should go to the creditors. Also, I would rather it go to the shareholders instead of the incompetent, greedy managers.

 

""While the company was filing for bankruptcy, for the second time, earlier this year, it actually tripled its CEO’s pay, and increased other executives’ compensation by as much as 80 percent. Over the past eight years since the first Hostess bankruptcy, BCTGM members have watched as money from previous concessions that was supposed to go towards capital investment, product development, plant improvement and new equipment, was squandered in executive bonuses, payouts to Wall Street investors and payments to high-priced attorneys and consultants. BCTGM members are well aware that as the company was preparing to file for bankruptcy earlier this year, the then CEO of Hostess was awarded a 300 percent raise (from approximately $750,000 to $2,550,000) and at least nine other top executives of the company received massive pay raises. One such executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256." http://www.nationofchange.org/hostess-blames-union-bankruptcy-after-tripling-ceo-s-pay-1353255416 "

Tue, 11/20/2012 - 02:24 | 2998042 Kickaha
Kickaha's picture

What you describe with such indignation is common in a shaky Chapter 11 bankruptcy.  Typically most of the key personnel are not under written contract, or have some escape clause in their written contract that allows them to jump ship when the company declares itself to be insolvent.  They have talent, skill, and experience which is readily sought by other companies.  They know they have little or no future in their present jobs.  They start accepting positions with other companies, and it is very hard to find anybody to replace them, due to the likely short-term nature of the positions.  On top of that, by the time anybody new gets up to speed, the business is likely tits up.

The company will be liquidated unless new capital comes in.  The creditors are in charge of the bankruptcy, not labor, not management, not the shareholders.  The new compensation packages are presented by Motion and then heard in open Court, and the creditors approve them.  Absent the continued presence of experienced key employees, the business will not be able to continue as a going concern, and it will be impossible to attract new capital, meaning that the assets will end up been chopped up and sold piecemeal, and the creditors will get pennies on the dollar in a Chapter 7 liquidation.

If anything, blame the largest creditors for this fiasco, since, in the end, they were unable to find a way to make the business work.  Maybe the managers they put in place weren't good enough.  Maybe some of them were overpaid.  Maybe they might have found some other way to deal with the unions.  Maybe the union bosses didn't understand the gravity of the situation, and maybe the rank-and-file were dumb as bricks and only now are finding out that they have lost their jobs and must now compete with the 25% of the labor force that is out of work for whatever low-paying, marginally skilled jobs might come on the market during this depression.

Bakeries have been dropping like flies all over the USA for at least 40 years.  Better transportation and freezers turned local markets into regional and national ones, and brought hundreds of bakeries into direct competition with each other.  Only a handful will survive once an oligopoly with some pricing power gets established.

 

 

 

Tue, 11/20/2012 - 03:38 | 2998087 Angry White Dude
Angry White Dude's picture

Correct and accurate. As a bankruptcy attorney who has practiced in front of Judge Drain and the SDNY courts for 10+ years, payment of bonuses to existing management is par for the course. The logic, which is debatable, is that the assets of a company like Hostess are a "melting ice cube" and the value will evaporate if the existing management doesn't stick around to oversee the sale, which they won't do if they don't get a bonus. Basically extortion, but hey that's capitalism if you ask me. In short, the choice is stick with the people with institutional knowledge who are, all things being equal, in the best spot to execute the liquidation (and preserve value of PPE and other assets in the meantime), or else those folks walk away and a chapter 7 trustee brings in a liquidation specialist who will just run a fire sale. In theory, the devil you know will result in preserving asset value and getting higher prices.  

 

Mon, 11/19/2012 - 23:56 | 2997891 scaleindependent
scaleindependent's picture

double post

Mon, 11/19/2012 - 23:54 | 2997889 scaleindependent
scaleindependent's picture

Your hate makes you into an idiot.

Let me explain. Although I agree unions should share the blame, it looks like the execs are the greedy bastards that ruined the company. In the process, they make out like bandits by giving themselves 100% or more raises while declaring bankruptcy and then after declaring bankruptcy they want a bonus or an incentive?  Please...

 

What everyone here is ignoring are the creditors and shareholders of the company. Any remaining money should go to the creditors. Also, I would rather it go to the shareholders instead of the incompetent, greedy managers.

 

""While the company was filing for bankruptcy, for the second time, earlier this year, it actually tripled its CEO’s pay, and increased other executives’ compensation by as much as 80 percent. Over the past eight years since the first Hostess bankruptcy, BCTGM members have watched as money from previous concessions that was supposed to go towards capital investment, product development, plant improvement and new equipment, was squandered in executive bonuses, payouts to Wall Street investors and payments to high-priced attorneys and consultants. BCTGM members are well aware that as the company was preparing to file for bankruptcy earlier this year, the then CEO of Hostess was awarded a 300 percent raise (from approximately $750,000 to $2,550,000) and at least nine other top executives of the company received massive pay raises. One such executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256." http://www.nationofchange.org/hostess-blames-union-bankruptcy-after-tripling-ceo-s-pay-1353255416 "

Tue, 11/20/2012 - 01:55 | 2998021 Lednbrass
Lednbrass's picture

Well, on the good side their hate has not made them such complete idiots that they say the same thing three times while trying to master something as technically complex as posting on the internet.

So at least they have that much going for them...

Tue, 11/20/2012 - 01:55 | 2998023 Oldwood
Oldwood's picture

What is their net debt? While I agree that the salaries make the executives look bad, how much did these pumped up salaries impact Hostess bottom line. I mean if they are hundreds of millions in the hole anyway they may be more like grave robbers than murdering thieves. Its very possible we have multiple bad players here. What is important is what actually was the primary driver to the financial collapse.

Tue, 11/20/2012 - 03:33 | 2998083 W T Effington
W T Effington's picture

It is not your money. You are not party to any of the relevant contracts or agreements. You should have no "say so" in what hapens. Almost no one in this country knows how to mind their own damn business. If the government gets involved and starts throwing around tax dollars then you can start complaining.

Mon, 11/19/2012 - 18:16 | 2997048 benevolous
benevolous's picture

Maybe the 18,500 laid off workers can get the $1.75 million in scheduled bonuses and wind-down and moth ball the plants and distribution themselves.

Mon, 11/19/2012 - 18:30 | 2997125 darteaus
darteaus's picture

MORE LIKE THE UNION BOSSES OF 'the 18,500 laid off workers can get the $1.75 million in scheduled bonused and wind-down and moth ball the plants and distribution themselves.'

Mon, 11/19/2012 - 22:31 | 2997730 hawk nation
hawk nation's picture

Lets review the unions books. Sorry thats not allowed by anyone including the union members or useful idiots

Mon, 11/19/2012 - 18:56 | 2997214 Being Free
Being Free's picture

They can't do that, it's not in the job description.  Sigh.

Mon, 11/19/2012 - 18:17 | 2997058 Joe_in_Indiana
Joe_in_Indiana's picture

There was a worker on CNBS today saying that the $4.00/hour taken out of their paychack to go to their pension had been waylaid and corporate kept the money.  I would like a fact check on this.

 

Mon, 11/19/2012 - 18:22 | 2997085 walküre
walküre's picture

I'm sure you'll get that /not

Corporate media owned by corporate whores reporting on corporate propaganda only.

For the money and by the money.

That is why this country needs more unions, not less. Despite what many think, the unions keep corporate management in check as best as they can. Fuck, many corporations are run into the ground by management and unions can't do anything about it.

It is time the workers take the production back. Take it back from executive losers and their shareholders.

You want Fightclub? This is where the iron meets the kneecaps.

Mon, 11/19/2012 - 18:26 | 2997104 fonzannoon
fonzannoon's picture

Do you feel the same way about the public unions?

Mon, 11/19/2012 - 18:31 | 2997129 walküre
walküre's picture

No.

Mon, 11/19/2012 - 18:33 | 2997140 fonzannoon
fonzannoon's picture

I had a feeling. That is why I did not junk you. Fair enough.

Mon, 11/19/2012 - 18:37 | 2997156 walküre
walküre's picture

Public workers are on the government teet anyway. They're paid to deliver a public service. They can leave if they want to. Production workers are a different matter. They have no representation inside the jungle of corporate exploitation.

Mon, 11/19/2012 - 19:05 | 2997239 Wannabee
Wannabee's picture

@walkurie
+1 for your passion

Mon, 11/19/2012 - 19:21 | 2997283 perchprism
perchprism's picture

 

You socialist Upton Sinclair marxist thugs make me sick.  Jungle of Corporate exploitation--gimme a break.  You think other people owe you a living.  You're just a thief.   

Mon, 11/19/2012 - 19:25 | 2997295 Harbanger
Harbanger's picture

You really believe he doesn'lt like Public unions? :)

Mon, 11/19/2012 - 23:41 | 2997863 Mary Wilbur
Mary Wilbur's picture

Absolutely.

Mon, 11/19/2012 - 18:27 | 2997117 darteaus
darteaus's picture

Don't ever, EVER go full union!

Mon, 11/19/2012 - 18:31 | 2997126 Joe_in_Indiana
Joe_in_Indiana's picture

This could be a fact check-happened in July 2011

 

http://m.dailykos.com/story/2012/11/18/1162786/-Inside-the-Hostess-Bankery

Mon, 11/19/2012 - 19:06 | 2997240 taxpayer102
taxpayer102's picture

 

@Joe_in_Indiana

'Inside-the-Hostess-Bakery' union guy said "Remember how I said I made $48,000 in 2005 and $34,000 last year? I would make $25,000 in 5 years if I took their offer."  Hostess corporate management and shareholders will get their money from the court arranged bankruptcy liquidation.   The union guy citing his family's long working history at Hostess clearly describes the progression from middle-class to eventually making a wage of $11.26 an hour, not something reported by corporate media.  

Tue, 11/20/2012 - 02:47 | 2998056 Kickaha
Kickaha's picture

In a typical liquidation, nobody beyond the post-filing date lenders and secured creditors will get anything.  Given that with Hostess, there had been a recent, earlier filing, with private capital taking over, maybe the high priority classes might be a lot smaller, so maybe private capital might get some percentage of their earlier investment back.  They certainly would have wiped out most of the old creditors and old equity, and took the position of first secured creditor as to all company assets before putting up the new capital that kept the company in business the first time through Chapter 11.  But they are still going to lose tens of millions of dollars.

Your post reflects the main reason that labor unions are failing our nation as institutions.  They appear to be incapable of handling eras of excess labor and declining prices for labor.  There is nothing inherently wrong with earning $11.26 per hour if that is the maximum price for that sort of occupation.

What is grotesquely wrong is pretending otherwise, and having 25% of our working age population doing no work whatsoever as a result.

Mon, 11/19/2012 - 19:16 | 2997269 Opinionated Ass
Opinionated Ass's picture

I've got a crazy idea for you Walkure: how about not initiating violence? How about respecting private property rights?

 

How about this super crazy one: if you don't like your job, quit and look for another one, or start your own bakery?

Mon, 11/19/2012 - 19:38 | 2997333 NotApplicable
NotApplicable's picture

It seems the only logic people understand when discussing gang warfare is the need for a bigger gang.

Mon, 11/19/2012 - 19:37 | 2997330 NotApplicable
NotApplicable's picture

"It is time the workers take the production back. Take it back from executive losers and their shareholders."

Let's see...

At a local bakery, the bakers are scared to death of "their" union (or I should say were). They had to sneak into HR to clarify the lies told to them by their union rep. The big lie was that Hostess would fire them if they crossed a picket line to come to work. NONE of them wanted to strike.

Workers are gonna have to take production back from the unions as well, as they are just another gang providing the service of protection, whether you want it or not.

Mon, 11/19/2012 - 20:20 | 2997453 WAMO556
WAMO556's picture

I have lead to take on your iron. Pretty sure I already know the outcome. Most union workers I know have this nasty sense of entitlement that is closely akin to the fanatism of the social security entitlement types. It ain't your money.

Tue, 11/20/2012 - 03:40 | 2998090 W T Effington
W T Effington's picture

"Take back production"? In order to do that the union workers would have needed to actually be in control of production in the first place. That would unfortunately mean they would need to take some risk for themselves and go into business. I understand the union support though. It is always easier to take rather than produce. The state aparatus which the unions leverage to their benfit is the great myth where men try to live at the expense of everyone else. This includes unions and the corporatacracy.

Mon, 11/19/2012 - 18:19 | 2997063 Sands8oo
Sands8oo's picture

Government Ding Dongs bitchez!

Mon, 11/19/2012 - 18:19 | 2997065 A Lunatic
A Lunatic's picture

Hostess is too big to fail........

Mon, 11/19/2012 - 18:33 | 2997142 Debt-Penitent
Debt-Penitent's picture

The Hostess with the Absolute Mostess. They don'ty call him Uncle Sugar for nothing!

 

Too bad the Fed can't print Twinkies.  They'd be right on it!

Mon, 11/19/2012 - 18:20 | 2997071 RobD
RobD's picture

Mmmm Obama likes him some ding dongs or Obama Twinkies, better trade mark that lol.

Mon, 11/19/2012 - 18:24 | 2997093 LMAOLORI
LMAOLORI's picture

 

 

Obama is a ding dong and it looks like MOO chelle's the one who really loves the twinkies

Mon, 11/19/2012 - 18:23 | 2997089 lindaamick
lindaamick's picture

The same thing happened when Nortel went into bankruptcy.

The execs that stayed paid themselves bonuses for "reducing staff as planned".

This went on for a long time.

Mon, 11/19/2012 - 18:28 | 2997110 darteaus
darteaus's picture

And the incentives were in place FOR A LONG TIME, in order for the company to keep managers from running off to other companies while the company is trying to negotiate, and that's good business.

Mon, 11/19/2012 - 18:25 | 2997095 darteaus
darteaus's picture

Of course it will reopen w/o the unions - if it reopens at all.

Why would anyone hire the guys that forced the last owners out of business?

Mon, 11/19/2012 - 18:25 | 2997101 SloMoe
SloMoe's picture

Too big to flail? Not in America...

Mon, 11/19/2012 - 18:26 | 2997103 Frank N. Beans
Frank N. Beans's picture

all this for a twinkie?!  wtf

 

Mon, 11/19/2012 - 18:33 | 2997138 walküre
walküre's picture

18,500 workers is a big deal in America

those are affected directly

Mon, 11/19/2012 - 18:27 | 2997111 Hangfire
Hangfire's picture

Who cares about Hostess, when Kool-Aid is on the brink then you will really see the current administration go into panic mode!   

Mon, 11/19/2012 - 18:28 | 2997115 Jack Burton
Jack Burton's picture

How are you going to attract the top flight management talent if you do not reward their skill, talent and hard work with incentive bonuses? Clearly the management team is key to Hostesses performance, the top flight management deserves to be compensated for their performance. WOrkers are a dime a dozen and unskilled, any moneky could work there, while the management team is comprised of the best and the brightest with skill sets the company is in desperate need of.

If you want a bonus, work hard and become a skilled manager, the workers are just more unskilled liberal "takers", they ruined the company by their lazy and slovenly work and their demands for undeserved pay and benefits. Unskilled people like these bakers are what has ruined America.

Management bonuses are how companies get the talent that drives the success of American business. Unions try and tear down these successful vital managers out of greed and stupidity. They are the 47%.

Mon, 11/19/2012 - 19:12 | 2997257 Matt
Matt's picture

This almost reads as satire. " Clearly the management team is key to Hostesses performance, the top flight management deserves to be compensated for their performance" 

Because negative profits is a sure sign of performance, right? Their bonuses should be for negative amounts of money when the company runs a deficit.

Mon, 11/19/2012 - 20:27 | 2997469 Clycntct
Clycntct's picture

Matt what is this thing you call "almost"?

It either a question or an effect of to many twinkies.

Mon, 11/19/2012 - 21:20 | 2997602 Jack Burton
Jack Burton's picture

My post is so outrageous it has to be satire. But clearly many would agree with just what I posted. The American workers are lazy, overpaid and greedy. Better send the jobs to China where American companies can get the kind of workforce that management needs to boost profits and pad the bonus pool.

Mon, 11/19/2012 - 22:55 | 2997783 MeBizarro
MeBizarro's picture

Or workers simply can't organize or collectively bargain outside of the approved labor unions by the local or provinical or national Communist Party officials or risk all kind of threats and possibility of extended jail time or risk possibility of death.  

Mon, 11/19/2012 - 23:06 | 2997808 TruthHunter
TruthHunter's picture

"Clearly the management team is key to Hostesses performance"

 

Ha ha! great sarcasm, but you were probably serious.

BTW, if you are looking for someone to blame, don't forget Walmart.  They have put the 

squeeze on everybodies' distribution setups. Little Debbie has tried to protect their Independent

distributors and as a result, has had to contend with "Mrs Freshley" knockoffs.

Mon, 11/19/2012 - 23:33 | 2997839 MeBizarro
MeBizarro's picture

If I ever went insane, the location of Walmarts data centers would be the first location I would work to sabotage.  Everybody yells about finance and associated industries but I can't think of a company that I despise more than Walmart or that has ultimately done more harm to the US and its economy.   Yeah, we can get cheap durable goods of low-quality that forces us to throw them out and replace them.   Whoopee.  

In the interim, it has played a whole roll in hollowing out small-town/medium-town locally-owned businesses, placed huge cost pressures on industries that encourages huge consolidation to a degree in a market place or moving production overseas, has routinely violated all kinds of labor laws, poor wages and benefits, and has only changed some of its labor practices when it is has been embarrassed nationally/class-action lawsuits/threatened with gov't action of some kind.   

Tue, 11/20/2012 - 02:15 | 2998038 Oldwood
Oldwood's picture

Why do you blame walmart. Its not like they forced people to buy from them. The problem is us. I worked in the car dealership industry back in the 70's and everyone was screaming about how the Japanese were killing our auto industry, but yet Americans just kept buying them Toyotas. At what point will we ever be responsible for "us"? Everything is about the bankers or the government or somebody tricking us or taking advantage of our stupidity. We have always had choice, just not the choices we liked. We always go for the too good to be true and then are totally SHOCKED. All of this mess is from that same attitude. We know whats happening, we just want to ignore reality and just do what feels good and then try to figure out who to blame with it all goes to shit.

Mon, 11/19/2012 - 18:27 | 2997116 Waterfallsparkles
Waterfallsparkles's picture

To the Union Workers.  Let them eat cake.

Mon, 11/19/2012 - 18:32 | 2997132 pragmatic hobo
pragmatic hobo's picture

another case of union busting.

Mon, 11/19/2012 - 18:32 | 2997136 azengrcat
azengrcat's picture

Gas guzzler GM bailed out.  Junk food manufacturer bailed out.  What economically destructive enterprise is up next in line to raid my wallet?  

Tue, 11/20/2012 - 00:59 | 2997972 Matt
Matt's picture

You failed to voluntarily purchase their products, so now your money will be taken forcibly and used to keep them running. So, you lose that money either way, except if you didn't choose to "enjoy" the product, then you still pay and go without.

You see? This is really all your fault for making poor choices in your purchasing habits that were not in line with the best interests of society as a whole. You should have known better. Shame on you.

Mon, 11/19/2012 - 18:34 | 2997144 Seasmoke
Seasmoke's picture

union thugs vs. greedy management.....i always struggle with who i root for......

Mon, 11/19/2012 - 22:48 | 2997767 BraveSirRobin
BraveSirRobin's picture

Why don't we give the union thugs and management big sticks, lock them in a chain-link cage and let them work it out. We can pay-per view it and apply the proceeds to pay off the national debt.

Mon, 11/19/2012 - 18:35 | 2997148 Big Ben
Big Ben's picture

$1.75 Million in bonuses is certainly a "sweet deal" for management. Imagine what they would have gotten if the company had actually been profitable.

Long, long ago companies belonged to their stockholders. Now they belong to their management and the shareholders are really bagholders.  It would not surprise me if the managers teamed up with some outside investors, bought the trademarks and resumed operations in a right-to-work state.

Mon, 11/19/2012 - 19:15 | 2997266 Matt
Matt's picture

Is this due to individuals and ETFs holding the shares, so they cannot get together and control the Board of Directors? Is the collapse in mutual funds and other large funds part of the problem? Not enough shareholder activism due to lack of concentrated interest in companies?

Tue, 11/20/2012 - 04:00 | 2998099 Angry White Dude
Angry White Dude's picture

Shareholders get wiped out in almost all bankruptcies, unless the company is or may be solvent, which Hostess clearly ain't. Shareholders get fuckall say in the process. Rather, the US Trustee appoints an official creditors committee made up of unsecured creditors.

Mon, 11/19/2012 - 19:17 | 2997271 williambanzai7
williambanzai7's picture

I don't know why they call them bonuses anymore. Either they achieved what they were supposed to achieve, I.e., bankruptcy, or bonus means jackpot.

Mon, 11/19/2012 - 18:40 | 2997161 blunderdog
blunderdog's picture

It makes no sense for the corrupt and incompetent "management" that already sank the company to continue to be paid to dismantle it. 

The shareholders should replace the Execs immediately with a new team that would AT LEAST have a sincere interest in determining what went wrong before designing any kind of incentive structure.  It *could* actually make more sense for the workers to receive the incentives.  Po'folk will work pretty hard when they know they've got to save up a few bucks before an indefinite period of unemployment.  I doubt the same is true of the Exec team.

Mon, 11/19/2012 - 21:07 | 2997571 nmewn
nmewn's picture

My thoughts on this whole debacle were, if they are asking for a 10% reduction in pay (and they did) they (management) should take a 10% hit as well.

Both would be getting some of it back over time, per the agreement, except at the end of the the time period they would both be out a net 3%...that is, lower pay than now.

Also of consideration, management offered the workers 25% of the company in the negotiations, it never happened because one of the unions called a strike...the other unions of course, honored the strike and didn't cross the bakers picket lines.

Chapter 7 ensued...everyone got "cream" on their face in this one.

Mon, 11/19/2012 - 21:42 | 2997647 blunderdog
blunderdog's picture

Unions are just companies, same as any other--all the same corruption risks are as likely in a union organization as in a non-union organization. 

That said, if the workers are *PREVENTED* from any kind of collective bargaining with management, they don't have a prayer against the owners of the company.  The owners get to eat whether the production line is turning out thingmajigs or not. That can't always be said for the line-workers.

Mon, 11/19/2012 - 22:24 | 2997717 nmewn
nmewn's picture

I think we finally agree on something.

My objection has always been, if management/owner is going to say we need X from the worker in order to make it work, they should be willing to give up X themselves.

The owners need to have their return on investment, I think everyone agrees with this or there is no reason to put their savings at risk in the first place, giving a need for jobs.

I was instantly reminded of American Airlines? where owner/management said to employees take this cut and we'll be ok...then rewarded themselves with bonuses...at the same time holding the view that labor and benefits (normally) is the largest outlay of any company.

There is a balance.

Tue, 11/20/2012 - 01:39 | 2998014 RockyRacoon
RockyRacoon's picture

A little skin in the game is always good... as long as they keep it out of the dough mixers.

Mon, 11/19/2012 - 18:44 | 2997173 Downtoolong
Downtoolong's picture

the collective wrath of its former workforce

We already know that Twinkies have a natural half-life greater than Strontium 90.  Now we may get to find out if they are impervious to incineration.

Mon, 11/19/2012 - 18:46 | 2997178 williambanzai7
williambanzai7's picture

THE CREAM

Mon, 11/19/2012 - 23:58 | 2997897 Cardinal Fang
Cardinal Fang's picture

Mickey Mouse White Gloves    $  10.00

Cufflinks                              $ 125.00 

Wrinkled White Shirts            $   75.00

5 O'clock Shadow                  $     Free

Union Scale to Look

Frumpy and Hold Pic             $ Priceless

Mon, 11/19/2012 - 18:46 | 2997181 Downtoolong
Downtoolong's picture

I can’t quite put my finger on it,  but, there is something absurdly appropriate about our government taking over the Twinkie business. Maybe they have finally found their true calling.

Mon, 11/19/2012 - 19:01 | 2997225 dogbreath
dogbreath's picture

this is the company that makes wonder bread.  good riddance

Mon, 11/19/2012 - 19:33 | 2997313 krispkritter
krispkritter's picture

As in 'I Wonder if it's bread?'...Guy in Maintenance that I used to work with said the Hostess factories he worked in were dumps. They spent everything on salaries and management and the equipment was held together with duct tape and paper clips. And he said he never ate the products even though they gave it to employees, because the lines were so full of crap and contaminants that he'd never feed it to his family. 

Mon, 11/19/2012 - 20:51 | 2997538 willwork4food
willwork4food's picture

It builds (some) bodies 12 ways!*

 

*management only

Mon, 11/19/2012 - 23:29 | 2997838 Mary Wilbur
Mary Wilbur's picture

When I was a kid we called it balloon bread. My mother refused to buy it. She put a chocolate cupcake in my lunch when I was in the first or second grade. I took a bite into it and bit on a chunk of metal. Needless to say I have never eaten any of Hostess's plastic food again.

Mon, 11/19/2012 - 19:04 | 2997232 Almost Solvent
Almost Solvent's picture

Tyler making reference to GM/Chrysler BK:

 

Here's a clue for the novices in the room: It's called politics, you fucking morons. Stop being such a bunch of whiny pansies.

 

In retrospect, perhaps that wasn't the best of plans. It's hard to win a gun fight when all you bring is a penknife.

In the following days, the lenders began to realize their leverage was small and dwindling. Only the government had the ability or willingness to finance a bankruptcy reorganization of Chrysler, while also supporting its warranties and suppliers and recapitalizing Chrysler Financial. None of the lenders, some of which had consumer operations in the Midwest near Chrysler plants, had any desire to take over and liquidate the company.

Anyway, we all know the outcome. The large secured lenders folded, smaller dissident creditors balked, and the Administration threw the company into bankruptcy court, where a judge was charged with dividing the baby. As soon as the dissidents saw there were enough votes among the capitulating creditors to cram down the government's restructuring plan, and the judge was not inclined to block it, they threw in their cards and walked away. No matter what their ideological attitudes were, I think they eventually realized the fiduciary duty they defended so loudly in the press could come back to bite them if they continued to waste their investors' money in fruitless battle.

http://epicureandealmaker.blogspot.com/2009/05/more-of-kickin-sitcheyation.html

Tue, 11/20/2012 - 02:15 | 2998037 goodrich4bk
goodrich4bk's picture

Yes its politics.  And when the votes are tallied in Chapter 11, it's both a democracy and oligarchy: two thirds in dollar amount and more than one-half in number.

The people who believe the Chrysler or GM bankruptcies were "thuggish" or "under-handed" don't know squat about Chapter 11.

Mon, 11/19/2012 - 19:17 | 2997260 Waterfallsparkles
Waterfallsparkles's picture

All of those Union Workers really screwed themselves.  Now their Pensions will be cut in half when they are put into the default Pension fund.  Plus, now they do not have Jobs.  Just how many Bakers do we need?  Mexicans can do it cheeper.

Serves them right.

Mon, 11/19/2012 - 19:23 | 2997292 The Alarmist
The Alarmist's picture

PBGC maximum guarantee is something like $56K, so most of the rank and file will be able to scrape by.

Mon, 11/19/2012 - 20:46 | 2997526 Clycntct
Clycntct's picture

US pension insurer runs record $34B deficit

US Postal Service records $15.9 billion loss

Mon, 11/19/2012 - 19:29 | 2997306 Parrotile
Parrotile's picture

Maybe one of the many reasons why "Mexicans can do it cheaper" could be to do with the relative paucity of "Government Regulation" in Mexico.

All the "Multi-Letter" Government "safety" Agencies cost the producer a lot of money (that has to come off the bottom line). Add in local, State and Federal taxation and there are a LOT of "hands in the till" taking their "fair share" of business profits.

Why not go "The Whole Offshore" and have them made in China? Seems the "preferred location" for US and many other Countries shadow manufacture these days.

Same in Australia - nowadays "Proudly Made in Australia" generally means "complicated, technically challenging" parts made overseas, relatively simple, lower skill requirement ASSEMBLY in Australia" - which is not QUITE the same thing is it . . . .

Mon, 11/19/2012 - 20:51 | 2997541 dark pools of soros
dark pools of soros's picture

yo blind fool...  did you not read all the pay raises this management team was sucking dry from all the concessions that the Union gave in last go around??  are you that fuckin brain dead?

 

Mon, 11/19/2012 - 23:40 | 2997861 Cathartes Aura
Cathartes Aura's picture

lol @ "Mexicans can do it cheaper" - of course, landlords availing themselves of Section 8 padding to support the monthly rentals that a waged household used to pay will soon find tenants that also do it cheaper, by the dozen, in small homes, "Mexican worker style"

everyone benefits along the dried up food chain!

Mon, 11/19/2012 - 19:21 | 2997285 The Alarmist
The Alarmist's picture

Hostess, like Michael Jackson, is worth more dead than alive.

Mon, 11/19/2012 - 19:23 | 2997289 mrmister
mrmister's picture

That judge can force them to talk as long as he wants but it wont help hostess or twinkies. The stores that provide shelf space have already been making contracts with other vendors.

Mon, 11/19/2012 - 19:23 | 2997290 ShrNfr
ShrNfr's picture

Actually, the US is not trying to do anything here. This is a move pretty much any bankruptcy judge would make before allowing a conversion to a Chapter 7. Obama does not give a shit about any of you and your Twinkies. He could also care less about buying votes, he won't run for anything again. Come to think of it, he couldn't give a shit about what anyone thinks about what he does from here on out. I almost find that prospect more terrifying than a Bernak.

Mon, 11/19/2012 - 19:29 | 2997293 slackrabbit
slackrabbit's picture

As a matter of fact  90% of firm failures are due to bad management.

It is not the government, not the unions, not the workers, not the economy, not legislation, not technology changes, nor geography.

This is documented and researched fact.

Read any book on turnaound and bankruptcy and you'll see the statistics glaring back at you.

That only leaves 10% for the rest.

The fact that management had a great brand and managed it  to bankruptcy is one thing, but then they even managed to screw that up pretty much says it all.

As for all those unfunded liabilites like pension plans etc - where have we seen that before?

My guess is one of the large confections will purchase it and have the product made in another state; or if they're smart, market globally...

Mon, 11/19/2012 - 19:47 | 2997359 Hangfire
Hangfire's picture

Your'e thinking of the good old days like the 80's and 90's when people could eat the hostess line of goodies and not have to worry about being shunned.  Their stuff is really just relics, if you worked in the retail/ convenience store sector you would know that things just don't move like they used to.  How do you successfully market packaged fat in todays world of health nazi consciousness?  

Mon, 11/19/2012 - 22:58 | 2997793 MeBizarro
MeBizarro's picture

There are plenty of unhealthy consumer durable good and products that are just doing fine.  

Tue, 11/20/2012 - 05:59 | 2998166 NidStyles
NidStyles's picture

Durable Good =/= Hostess fat globules. Hostess fat Globules are Consumables.

Mon, 11/19/2012 - 20:39 | 2997503 Papasmurf
Papasmurf's picture

Management's looting of corporations will continue until morale improves.

Mon, 11/19/2012 - 20:58 | 2997552 Ain't No Sunshine
Ain't No Sunshine's picture

And most of the 90% probably had to bargain with unions.

The other 10% bargained in good faith..

Fuck unions.

Mon, 11/19/2012 - 22:32 | 2997734 ShrNfr
ShrNfr's picture

I do a lot of distressed investing. The first bankruptcy here came about by a combination of old plant, excessive energy costs, the unions and to a degree, the management. If you had better management, the first two things would not have been as big a problem, but they were a problem none the less. The killer was the union work rules the first time around. The bankruptcy I am currently involved in is totally a management fuckup. Others have been fraud. The whole thing is a spectrum. As a matter of fact 100% of all bankruptcies are companies who file bankruptcy. Beyond that, you do not get to say much as the proximate cause.

Mon, 11/19/2012 - 20:49 | 2997297 mrmister
mrmister's picture

It could be taken over by GM. Buy a chevy volt get a glove box and trunk full of cupcakes. Here is an actual commercial they did http://m.youtube.com/watch?v=_vAeeUhloQA

Mon, 11/19/2012 - 19:29 | 2997304 neutrinoman
neutrinoman's picture

Is there a triple-leveraged inverse Twinkie ETF, so I can short this thing?

Mon, 11/19/2012 - 19:48 | 2997314 michael_engineer
michael_engineer's picture

Is it a delicious creamy center filing? The bonus issue suggestst the filing is creamy for some.

Mon, 11/19/2012 - 19:37 | 2997328 israhole
israhole's picture

No way Jews are running this sham too, no way.

Mon, 11/19/2012 - 19:50 | 2997376 TWSceptic
TWSceptic's picture

Only a union could destroy a junk food company in America...

Mon, 11/19/2012 - 22:54 | 2997784 TruthHunter
TruthHunter's picture

"Only a union could destroy a junk food company in America..."

...and the Union had a monopoly on greed in this situation?

Mon, 11/19/2012 - 19:54 | 2997391 Flatchestynerdette
Flatchestynerdette's picture

If it becomes a bailout company where unions rule - I'll never eat another twinkie again. I swear it. I'll eat Entemann's or Little Debbie. I won't support a union shop that got the government to screw the creditors and expect to have a job ad infinity.........

Mon, 11/19/2012 - 20:21 | 2997440 alien-IQ
alien-IQ's picture

Is there a CEO union I can join? They seem to make out like bandits.

"as the company was preparing to file for bankruptcy earlier this year, the then CEO of Hostess was awarded a 300 percent raise (from approximately $750,000 to $2,550,000) and at least nine other top executives of the company received massive pay raises. One such executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256."

 

http://thinkprogress.org/economy/2012/11/16/1203151/why-unions-dont-shou...

 

 

Mon, 11/19/2012 - 20:48 | 2997527 Papasmurf
Papasmurf's picture

Don't you think they earned those increases?  It's way harder to run a company into the ground than to run it profitably.

Tue, 11/20/2012 - 12:06 | 2998850 Ident 7777 economy
Ident 7777 economy's picture

Thinkprogress - a really, really leftist source.

 

Almost as good as The Nation ...

Mon, 11/19/2012 - 20:22 | 2997458 Tom in AZ
Tom in AZ's picture

What part of management agreeing to every damn one of the workplace rules don't you union bashing dimwits understand? As long as management gets the bonuses TODAY, and pays a dividend TODAY, they will agree to anything as long as they can kick the consequence down the road. The time to object is when the contract rules are set, Not five years later when it is management's turn to 'honor' their part of the deal. And the asset stripping 'equity partners' can GFY.

Mon, 11/19/2012 - 20:55 | 2997544 dark pools of soros
dark pools of soros's picture

the bashers are tone deaf..  they have been programmed to never wonder why managers get 400% raises out of thin air while waves of layoffs flood the place

why does a manager care if they can pay off all their mortgages and retire after robbing the place to its grave?

 

Mon, 11/19/2012 - 22:36 | 2997744 hawk nation
hawk nation's picture

Your a useful idiot union worker

Tue, 11/20/2012 - 12:08 | 2998859 Ident 7777 economy
Ident 7777 economy's picture

and you should learn to use contractions, otherwise you're on the foolish end of the stick. 

Mon, 11/19/2012 - 20:31 | 2997478 Never One Roach
Never One Roach's picture

Hostess CEOs are trying to catch up to record high Banker Bonuses, that's all.

Mon, 11/19/2012 - 21:51 | 2997670 outofhere
outofhere's picture

More than one roach on the Twinkie Board.

 

Mon, 11/19/2012 - 20:49 | 2997531 Bicycle Repairman
Bicycle Repairman's picture

So I'll get my ho-hos from the Bimbo group.  Figures.

Mon, 11/19/2012 - 21:35 | 2997629 outofhere
outofhere's picture

Another great American Company sliced and diced, divided among the 1%ers.

Mon, 11/19/2012 - 22:42 | 2997764 Totin
Totin's picture

Another great American Company run to ruin by the wage inflaters.

Mon, 11/19/2012 - 21:35 | 2997630 outofhere
outofhere's picture

Another great American Company sliced and diced, divided among the 1%ers.

Mon, 11/19/2012 - 22:02 | 2997683 cxl9
cxl9's picture

Who needs Hostess when there's TastyKake?

Nothing stops the employees from coming together and taking over the company (purchasing the assets in bankruptcy, perhaps) and operating it themselves according to their business, social, or ethical principles. They can pay themselves whatever they think they are worth, and let's see how that works out. That is essentially what United Airlines did, and look at how well they're doing. Great airline, solid profits, good growth, happy employees, pleasure to fly on, stock paying a dividend. Oh wait ...

Mon, 11/19/2012 - 22:16 | 2997705 hawk nation
hawk nation's picture

I said this weekend somehow the obama administration would own the company for the union

Its looks like they will break the law to do it

No company will continue to business in a country that does not follow the rule of law

Mon, 11/19/2012 - 22:24 | 2997718 knowless
knowless's picture

I'm gonna love seeing a company that manufactures "food" trying to find qualified machine operators, maintenance personnel, and technicians for less than 10 an hour, especially given current inflation and housing, good luck dumb fucks, hope management knows how to fix hydraulics, let alone tune a machine. Idiots. Durr, IS A BONUS, BONUS!! Shits gonna be epic.

Mon, 11/19/2012 - 23:02 | 2997802 MeBizarro
MeBizarro's picture

Likely a good chunk of the production well head to northern Mexico regardles of how ultimately buys the rights to the brand after the clusterf@ck bankruptcy is cleared up.  There is a lot of nostalgic value in some of these brands and they still have decent market share.  Not like they were a product that hasn't been on the shelf & consumed by large numbers of Americans in the past 10 or 20 years. 

Mon, 11/19/2012 - 22:25 | 2997719 ShrNfr
ShrNfr's picture

Good grief guys, go out and learn some bk law and understand what this shit is about. Liquidating a company like this can take a year or two by the time you get through all the shit. There is probably asbestous in some of the old ovens for instance. One of the bigger problems with Hostess and its predecessor is that some of the plant was real old crap. This is not jingle mail by any matter of means. The judge here was doing what judges do. One last shot at not doing a conversion to Chapter 7, if that fails, then convert to Chapter 7. I have played in the bankruptcy sandbox for years. There is nothing especially unusual or excessive going on. Obama is not stealing your Twinkies. But carry on if you wish.

Mon, 11/19/2012 - 22:31 | 2997732 BraveSirRobin
BraveSirRobin's picture

The government wants your Ding-Dong

Mon, 11/19/2012 - 22:38 | 2997749 BlackholeDivestment
BlackholeDivestment's picture

2112 in 30 days, and the new age of Aquarius begins and we are fiscally under water, but we'll have Twinkies still. Whoopy. 

http://www.youtube.com/watch?v=LQEgZNqa8jE

Mon, 11/19/2012 - 22:51 | 2997773 Zer0head
Zer0head's picture

There is only one bungle in this negotiation, just one

the dumbass emffin PE slime balls fcked up

the douche bags let the thing become a media darling instead of folding it up wiping and flushing the thing

way more value in its parts than having to  deal with the gold plated contracts of the union slugs

they were almost there - lock the doors, sell the brands and then sell the prime real estate

but now they have to deal with Barack and if they are so lucky Ratman Mayor Boomberg's personal willett who will save the ding dong industry

 

(the only good thing is that these emeffers will freeze thier collective asses off this winter in Cinci or some other horrible place instead of counting their $ basking on some warm beach)

Mon, 11/19/2012 - 23:01 | 2997799 hawk nation
hawk nation's picture

After the government buys the company they will require the product to be distributed in the public schools as a lunch item

 

they will add some vitamins or not and tell everyone they are now healthy to eat. If they can convince people of global warming convincing people the product is healthy does not seem to be too big a deal

Market as a prepper food

Tue, 11/20/2012 - 00:40 | 2997800 Insideher Trading
Insideher Trading's picture

Post Mortem Hostess Bankruptcy:

Nationalization Directive,

Under the supervision of Michele Obama, Hostess will be required to create a healthy alternative to twinkies. Twinkies shall be replaced by apple sauce filled bananas and will be the only option at vending machines nationwide. There will be a tax levied on the re purposed snack not to exceed 200% of the cost of the product. The revenue from this tax will be applied to efforts to keep the climate from changing ever again.

With this effort citizens will have more freedom while at the same time preventing things like stormy weather.

Mon, 11/19/2012 - 23:09 | 2997815 Clowns on Acid
Clowns on Acid's picture

All this twaddle on the post. The answer is simple....ObamaCare. Get used to it !

Investors will pull their $$ out. Obama and his pack of smirking jackals think one can legislate / regulate production.

Who is behind this community Organiazer?

Mon, 11/19/2012 - 23:10 | 2997816 MeBizarro
MeBizarro's picture

Any time there is remotely anything mentioning 'unions' at least half of the posts on here go full-on retard and ramble mindlessly about the evils of unions.  This was a company that had already entered bankruptcy previously in '04 and has several huge issues/problems since then with the legacy pension and retiree health benefits of the different unions being involved just one of them.

In our Internet age though where everything now has to be 120 characters or less, you need to find a designated bogeyman and paint that message over and over and over again.

If you are on the left, it is the evil 'vulture capitalists.'  If you are on the right, it is the evil 'union thugs or parasites.'  Not possible that there is plenty of blame to go around and that generally a bankruptcy of a company in one industry has very few/if any comparables to a bankruptcy in another industry.   

Mon, 11/19/2012 - 23:15 | 2997824 juslen
juslen's picture

I guess they could have cut a check to their 18,000 employees for 72 dollars each, lol. Why should I give a rats ass when the central banks are already robbing people of hundreds if not thousands of dollars per year through inflation.

Mon, 11/19/2012 - 23:22 | 2997836 MeBizarro
MeBizarro's picture

Does anyone who posted on here about 'nationalization' seriously believe the federal gov't is going to intervene here?  

Tue, 11/20/2012 - 02:49 | 2998057 Rusty Shorts
Rusty Shorts's picture

...anybody here remember a company named "Polaroid"???

 

https://www.youtube.com/watch?v=_XoogcvcSyg&feature=related

Mon, 11/19/2012 - 23:30 | 2997837 Incubus
Incubus's picture

Ding Dongocaust

 

they will be remembered by lard assed americans everywhere. 

 

http://www.youtube.com/watch?v=iPrnduGtgmc

Do NOT follow this link or you will be banned from the site!