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  1. #1
    Atomic Punk
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    Default Hostess going out of business

    IRVING, TX - Hostess, the maker of Twinkies, Ding Dongs and Wonder Bread, is going out of business, according to The Associated Press.

    The announcement comes after the deadline for striking workers to return to work came and went Thursday.

    Hostess said it would liquidate the entire company after the bakers union went on strike around the country last week.

    The union had been entangled in a bitter battle with Hostess, which is privately owned by two hedge funds.

    Workers said they refuse to accept diminished health benefits and wage cuts as part of the company plan to reorganize under Chapter 11 bankruptcy.

    The layoffs will likely affect 200 people who work in Connecticut.

    "We deeply regret the necessity of [Thursday's] decision, but we do not have the financial resources to weather an extended nationwide strike," said Gregory F. Rayburn, chief executive officer. "Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders."

    The wind down now means 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores throughout the United States will be closed.
    "Watch what people are cynical about, and one can often discover what they lack.” -- Gen. George S. Patton

  2. #2
    Master Bluesman Elwood P.'s Avatar
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    Quote Originally Posted by voivod View Post
    The layoffs will likely affect 200 people who work in Connecticut.

    "Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders."
    Well will it affect 200 people or 18,500?

    Bad news. Those chocolate Zingers Rule!
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  3. #3
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    Hostess Brands closing for good

    CNN Money

    NEW YORK (CNNMoney) -- Hostess Brands -- the maker of such iconic baked goods as Twinkies, Devil Dogs and Wonder Bread -- announced Friday that it is asking a federal bankruptcy court for permission to close its operations, blaming a strike by bakers protesting a new contract imposed on them.

    The closing will result in Hostess' nearly 18,500 workers losing their jobs as the company shuts 33 bakeries and 565 distribution centers nationwide, as well as 570 outlet stores. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union represents around 5,000.

    "We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," said CEO Gregory Rayburn in a statement.

    Hostess will move to sell its assets to the highest bidder. That could mean new life for some of its most popular products, which could be scooped up at auction and attached to products from other companies.

    A letter that Hostess sent to its network of stores that carry its product said it expects "there will be great interest in our brands." But it said it could not give a time frame for when the sales would take place and its products would be available again.

    But even if those brands are bought and restarted, the Hostess workers will not get their jobs back.

    "The industry has overcapacity. We're overcapacity. Our rivals are overcapacity," said Rayburn in an interview on CNBC. Asked if the shutdown decision could be reversed if the Bakers' union agreed to immediately return to work, he responded, "Too late."

    While approval of the bankruptcy court is needed before the company can start selling its assets in liquidation, the company said production at all of its bakeries has ceased effective Friday, and that stores will no longer receive products from Hostess Brands. But products that are already in stores can be sold, and the outlet stores will remain open for several days to sell the products they already have.

    Rayburn said Hostess had annual sales of about $2.5 billion. The company said there are had been 500 million Twinkies made annually.

    The company had given a 5 p.m. ET Thursday deadline for the bakers to return to work or face a shutdown of the company. The unions at Hostess could not be reached immediately for comment on the decision.

    Hostess filed for bankruptcy in January, its second trip to bankruptcy court since 2004. It previously emerged from restructuring in 2009 after a four-and-a-half year process.

    The company is now controlled by a group of investment firms, including hedge funds Silver Point Capital and Monarch Alternative Capital.

    In September, one of its major unions, the International Brotherhood of Teamsters, voted narrowly to accept a new contract with reduced wages and benefits. The bakers' union rejected the deal, however, prompting Hostess management to secure permission from a bankruptcy court to force a new concession contract on workers.

    The Teamsters union, which represents 7,500 Hostess workers, has been sharply critical of the smaller Bakers' decision to strike, saying it was forcing the company to the cusp of liquidation. The Teamsters said Thursday that the Bakers' union should hold a secret ballot vote on the company's offer, rather than the voice votes that were held in union halls around the country that authorized the decision to strike.

    "It is difficult for Teamster members to believe that is what the [Bakers union] Hostess members ultimately wanted to accomplish when they went out on strike," said the Teamsters' statement.

    The Bakers' union has made several statements earlier in the week saying management is to blame for the condition of the company, not the strike.

    The new contract cut salaries across the company by 8% in the first year of the five-year agreement. Salaries were then scheduled to bump up 3% in the next three years and 1% in the final year.

    Hostess also reduced its pension obligations and its contribution to the employees' health care plan. In exchange, the company offered concessions, including a 25% equity stake for workers and the inclusion of two union representatives on an eight-member board of directors. To top of page
    Do you work for Hostess? We want to hear from you. E-mail us and your story might be included in our coverage.

  4. #4
    Forum Frontman It's Mike's Avatar
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    very sad

  5. #5
    ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ Number 47's Avatar
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    Wow! I'd heard this on the news yesterday and this morning, but thought they were only talking about the Cleveland area Hostess. Had no idea it was the whole damn company. Think I'm buying some junk food tonight before it's gone for good.

  6. #6
    Forum Frontman It's Mike's Avatar
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    Quote Originally Posted by Number 47 View Post
    Wow! I'd heard this on the news yesterday and this morning, but thought they were only talking about the Cleveland area Hostess. Had no idea it was the whole damn company. Think I'm buying some junk food tonight before it's gone for good.
    the brands will survive. another company will own them, that's all.

  7. #7
    Gird your loins Daisy Hill's Avatar
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    Default

    too bad, they are a big employer in NW Ohio

    so here's the takeaway......when your union is negotiating with a employer who has already notified the shareholders that they are on the knife's edge......COMPROMISE



    the good news is with the self life of these things, if you stock up now, they'll still be fresh when whomever buys out the brand ramps up production in a year or two

    and whatever you have left over you can just chuck in your nuclear fallout shelter for future use

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  8. #8
    Forum Frontman fudd's Avatar
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    Wow. Another union ruining a company. Surprise.

  9. #9
    Atomic Punk ZeoBandit's Avatar
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    Very sad, although I am sure Twinkies and the Cup Cakes will live on.
    "What we are dealing with here, is a complete lack of respect for the law" - Jackie Gleason, Smokey and the Bandit

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  10. #10
    Master Bluesman Elwood P.'s Avatar
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    Quote Originally Posted by ZeoBandit View Post
    Very sad, although I am sure Twinkies and the Cup Cakes will live on.
    Maybe, but will The Zingers? Will The Zingers?
    "I'm the opposite of Bill Cosby. Diamond Dave always gets your approval." (DLR)

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  11. #11
    Atomic Punk ZeoBandit's Avatar
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    Will somebody please think about the Zingers!
    "What we are dealing with here, is a complete lack of respect for the law" - Jackie Gleason, Smokey and the Bandit

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  12. #12
    ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ Number 47's Avatar
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    Hostess Brands

    Baker's Inn
    Beefsteak
    Blue Ribbon
    Bread du Jour
    Butternut Breads
    Colombo
    Cotton’s
    Di Carlo
    Drake's
    Dolly Madison
    Dutch Hearth
    Eddy’s
    Good Hearth
    Holsom
    Home Pride
    Hostess
    J.J. Nissen
    Merita
    Millbrook
    Mrs. Cubbison’s
    Nature's Pride
    Parisian
    Standish Farms
    Sweetheart
    Toscana
    Wonder Bread

  13. #13
    Atomic Punk
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    Quote Originally Posted by fuddman5150 View Post
    Wow. Another union ruining a company. Surprise.
    Well, that's certainly one side of the story.


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  14. #14
    Forum Frontman It's Mike's Avatar
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    Quote Originally Posted by hagarfn View Post
    Well, that's certainly one side of the story.


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    this was not their first time at the bankruptcy protection game, gotta wonder about the qualifications of those running the company.

  15. #15
    Forum Frontman fudd's Avatar
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    Quote Originally Posted by hagarfn View Post
    Well, that's certainly one side of the story.


    Sent from my iPhone using Tapatalk
    Yeah but they tried to do that right thing and the employees turned it down. Or the union turned it down. Now 20000+ don't have jobs. Soooo what's the problem?

 

 

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