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Username Post: No Twinkie bailout?        (Topic#537858)
Johnny_Upton
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11-17-12 08:50 AM - Post#1486210    



I guess not all unions are created equal

This will be a major blow as the 47% will be losing one of their 4 food groups

Hostess shuttering doors, ending era of iconic brands
Hostess CEO says strike was fatal blow for bankrupt company and that it is too late to fix it. Nearly 600 could lose jobs in Schiller Park and Hodgkins bakeries.

By Alana Semuels,Tiffany Hsu and Emily Bryson York

Tribune Newspapers

12:37 AM CST, November 17, 2012
Advertisement

Fear not for the Twinkie. In all likelihood it will outlive us all.

The same cannot be said for Hostess Brands, the bankrupt baker responsible for Twinkies, Wonder Bread and other goods. The company said Friday it has asked a bankruptcy judge for permission to go out of business and lay off 18,500 workers, blaming a labor strike by members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union.

In the Chicago area, Hostess employs about 300 workers making CupCakes, HoHos and Honey Buns in Schiller Park. Hostess also has a bakery in Hodgkins, where 325 workers make Beefsteak, Butternut, Home Pride, Nature's Pride and Wonder breads. The company's connection to Chicago is more than crust or frosting deep: the Twinkie was invented in the Chicago area in 1930.

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

Texas-based Hostess, which has about $2.5 billion in sales, said it had suspended operations at all of its 33 plants around the United States as it moves to start liquidating assets. The expectation is that other baking companies or investors will scarf down the brands, giving its products a good chance at a new life under different ownership.

"We'll be selling the brands and as much of the infrastructure as we can," said company spokesman Lance Ignon. "There is value in the brands."

Gary Stibel, founder of the New England Consulting Group, said "the jury's still out," on the company's future, adding that the firm may be able to "work something out in the eleventh hour."

"There's a lot of activity going on," said Stibel, who added that his firm is involved in the conversations, but not representing Hostess. "Let's just say there are a lot of folks who are going to be working over the weekend."

Stibel said the only thing for certain is that "these brands aren't going anywhere."

"In the final analysis, these brands will return," he said. "Tylenol came back, Coke came back, and many of (the Hostess brands) will do better once this is over with."

Among the company's other brands: Ho Hos, Ding Dongs, Sno Balls, Donettes, Dolly Madison Zingers and Drake's snack cakes.

The closure of Hostess plants creates a complication for other companies, including Supervalu Inc., parent of the Jewel supermarket chain. Hostess was the contract baker for Supervalu's private label Essential Everyday breads, sold in Jewel.

"It is possible that in some markets there may be some shortages of Essential Everyday, but we are quickly working to implement our contingency plan," spokesman Mike Siemienas said.

The dispute that closed Hostess focused on cost-cutting efforts by a company that has been in bankruptcy for all but three of the past eight years. Plagued by high labor and pension expenses, the company had sought numerous concessions from workers and needed more.

Hostess said the bakery union strike that began last week had crippled its ability to produce and deliver products at several facilities, and it had no choice but to give up its effort to emerge intact from bankruptcy court.

The union accused Hostess in a statement of making unreasonable demands, including wage and benefit cuts of roughly 30 percent for workers, while top executives of the company received large pay raises.

"The crisis facing Hostess Brands is the result of nearly a decade of financial and operational mismanagement that resulted in two bankruptcies, mountains of debt, declining sales and lost market share," said Frank Hurt, the union's president. "The Wall Street investors who took over the company after the last bankruptcy attempted to resolve the mess by attacking the company's most valuable asset – its workers."

The Teamsters Union, which also represents 6,700 workers at Hostess Brands plants, had settled an earlier labor dispute with the company.

"The Teamsters Union tried everything in its power during the company's most recent financial difficulties to shape an outcome that would put Hostess on strong footing to be viable and preserve jobs," said Teamsters General-Secretary Ken Hall, in a statement. "Unfortunately, the company's operating and financial problems were so severe that it required steep concessions from a variety of stakeholders but not all stakeholders were willing to be constructive."

Hostess, a vintage favorite, had lost some ground with customers. From May 2012 to the same month in 2011, sales of Twinkies slipped 0.8 percent, Ding Dongs fell 8.7 percent and Ho Ho's tumbled 6.3 percent, according to analysis from research group Mintel.

The company ceded its top position in the pre-prepared cupcakes and brownies segment to McKee Foods, whose sales increased 1.8 percent, largely on the strength of its Little Debbie brand. Smaller rivals such as Bimbo Bakeries and Give and Go also poached customers from Hostess, as have private label offerings from grocery stores, according to Mintel.

The Hostess shutdown announcement sent shock waves through the country Friday, causing Americans to begin hoarding Ding Dongs and bemoaning their fading childhoods.

Chicago-area convenience stores reported that they'd sold out of Twinkies — some within an hour after opening. At the Walgreens adjacent to the Wrigley Building on Michigan Avenue, Twinkies were gone before 9 a.m. Friday.

Other Hostess products were flying off the shelves too. Those single serving pies that magically require no refrigeration? No more blueberry.

Salina Gonzalez made a beeline for the Hostess section at the Target at 1940 W. 33rd St. Friday afternoon.

With three sons marching behind her, the Pilsen woman smiled at seeing a few boxes of Twinkies still on the shelves.

She grabbed one. But sons Alex, 6, Noah, 9, and Nicolas, 11, were seeing no part of those treats.

"I'm picking these up for my grandmother. She had me come get some Twinkies for her," Gonzalez said.
It was down in Louisiana,
Just about a mile from Texarkana,
In them old cotton fields back home.


 
clydefrog0371
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11-17-12 09:02 AM - Post#1486214    


    In response to Johnny_Upton

I'm sure it's some CIA/Muslim/Obama conspiracy. Don't worry John McCain is all over it.
"Meet me and my foot"...best threat ever.


 
Hike
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11-17-12 09:16 AM - Post#1486218    


    In response to clydefrog0371

NJ Governor Chris Christie having a little fun with the twinkie story:

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

This guy is really starting to grow on me.

In many ways, I really like the guy. He's a straight-shooter, he's fiscally conservative and doesn't wilt under the pressure, and is socially liberal enough for me to like him. On the flip side, he can be arrogant, inflexible, and stubborn.

In all honesty though, most real leaders have a tendancy to be arrogant, inflexible, and stubborn, lol.
When you have bacon and eggs for breakfast, the chicken makes a contribution, but the pig makes a committment


 
Kanrok
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11-17-12 09:19 AM - Post#1486219    


    In response to Johnny_Upton

Ironic that a confection invented in the midst of the depression is now likely gone forever because of current economics.
Blessed are those who hunger and thirst for justice, for they shall be satisfied.


 
haymaker36
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11-17-12 09:50 AM - Post#1486224    


    In response to Kanrok

I think it has a lot more to do with how people feel about nutrition today than current economics. How many of you guys with kids feed them Wonderbread, Twinkies, and Ho-Ho's on the regular?
"I may be an emotional cripple but am becoming a strong, burly fucking hunk of a man."

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NYR_Nutz
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11-17-12 10:19 AM - Post#1486226    


    In response to haymaker36

  • haymaker36 Said:
I think it has a lot more to do with how people feel about nutrition today than current economics. How many of you guys with kids feed them Wonderbread, Twinkies, and Ho-Ho's on the regular?



Doubtful - people eat the worst shit possible on a daily basis. I don't see McDonald's or Wendy's doing out of business anytime soon


 
Mike
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11-17-12 11:43 AM - Post#1486244    


    In response to NYR_Nutz

I seriously doubt the brand is gone. Like GM, if its still valuable, someone will buy it out of bankruptcy. Unlike GM, the government wont be the investor and the unions wont get a parachute.


 
taz
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11-17-12 12:22 PM - Post#1486249    


    In response to clydefrog0371

  • clydefrog0371 Said:
I'm sure it's some CIA/Muslim/Obama conspiracy. Don't worry John McCain is all over it.



You can thank the unions for this loss of almost 20,000 jobs.
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Tim-
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11-17-12 12:23 PM - Post#1486250    


    In response to Mike

Bailout was a bad idea, and I'm glad to see a company call the union out.
"It is not our fault that the world is bad, and we do not want to die changing it. We want to live- that is all."

-Tadeusz Borowski


 
HEAVYWEIGHT
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11-17-12 12:42 PM - Post#1486256    


    In response to Tim-

Here is NOBAMA's econ team:

President Obama and Vice President Biden met with leaders of civil rights and civic organizations to discuss negotiations over how to avoid the fiscal cliff. The meeting lasted over an hour, and participants spoke to reporters outside the West Wing after they wrapped up.

Per the White House, expected attendees included:

* Peter Berns, The Arc
* Sister Simone Campbell, NETWORK
* Chad Griffin, Human Rights Campaign (HRC)
* Wade Henderson, Leadership Conference on Civil Rights (LCCR)
* Deepa Iyer National Council of Asian Pacific Americans (NCAPA)
* Ben Jealous, NAACP
* Marc Morial, National Urban League
* Janet Murguia, National Council of La Raza (NCLR)
* Barry Rand, AARP
* Kristin Rowe-Finkbeiner, MomsRising.org
* Rev. Al Sharpton, National Action Network (NAN)
* Aaron Smith, Young Invincibles
* Rev. Jim Wallis, Sojourners

^^ This is the perfect description of "FAIL"!

USA, "BACK to BACK World War Champs"!




Edited by HEAVYWEIGHT on 11-17-12 12:43 PM. Reason for edit: No reason given.
 
Baldridge
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11-17-12 01:11 PM - Post#1486265    


    In response to haymaker36

  • haymaker36 Said:
I think it has a lot more to do with how people feel about nutrition today than current economics. How many of you guys with kids feed them Wonderbread, Twinkies, and Ho-Ho's on the regular?



Sadly,alot of people do.......

As one worker said,they pretty much took everything from us anyhow.Our pension,healthcare,vacati on time,and now asking for a 10 percent pay cut........

Welcome to the new America,lower your standards of living or we'll shut down.....

How much does the CEO walk away with?......He'll recieve the rest of his contract at 2.5 million a year.Tough times.......
I don't hate you because you're fat....You're fat because i hate you.......




Edited by Baldridge on 11-17-12 01:13 PM. Reason for edit: No reason given.
 
Cotton
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11-17-12 01:29 PM - Post#1486271    


    In response to Baldridge

Tasteykake will buy them. Mergers and acquisitions, bitches.
"No man in the wrong can stand up against a fellow that's in the right an keeps on a-comin."
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Baldridge
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11-17-12 01:36 PM - Post#1486273    


    In response to Cotton

Coconut Junior?.......
I don't hate you because you're fat....You're fat because i hate you.......


 
clydefrog0371
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11-17-12 02:15 PM - Post#1486283    


    In response to taz

  • taz Said:
  • clydefrog0371 Said:
I'm sure it's some CIA/Muslim/Obama conspiracy. Don't worry John McCain is all over it.



You can thank the unions for this loss of almost 20,000 jobs.



Maybe just maybe, the reason it's that making mass produced sugar snacks is no longer profitable because rising food costs, rising fuel costs, healthy eating, competition and yes high union wages.

Or to most people Obamas fault.
"Meet me and my foot"...best threat ever.


 
Badlands92
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11-17-12 02:45 PM - Post#1486299    


    In response to clydefrog0371

Healthy eating. LOL

http://hamptonroads.com/2012/09/study-obesity -rate...

Yes, we certainly are a slimming country.
I expect to play every day. That's our job. You go out there every day and contribute in some way.

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Tim-
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11-17-12 02:47 PM - Post#1486300    


    In response to Badlands92

People are paying more attention to what they eat.

Unfortunately though, criminal groups like the USDA intentionally mislead and lie to the populace.

And with such high national wealth, everyone has a car, and wants to go out to eat.
"It is not our fault that the world is bad, and we do not want to die changing it. We want to live- that is all."

-Tadeusz Borowski


 
Badlands92
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11-17-12 02:48 PM - Post#1486302    


    In response to Tim-

The 20% of the population that are big Twinkie eaters to begin with are not paying attention to what they eat.
I expect to play every day. That's our job. You go out there every day and contribute in some way.

- Jason Kendall, May 5, 2010


 
Cotton
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11-17-12 02:51 PM - Post#1486304    


    In response to Badlands92

That Christie video cracked me up. He has a good sense of humor.
"No man in the wrong can stand up against a fellow that's in the right an keeps on a-comin."
-creed of Texas Ranger Captain W. J. McDonald




 
clydefrog0371
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11-17-12 03:01 PM - Post#1486310    


    In response to Badlands92

  • Badlands92 Said:
Healthy eating. LOL

http://hamptonroads.com/2012/09/study-obesity -rate...

Yes, we certainly are a slimming country.



Plenty of people eat healthier. That's why organic foods are a billion dollar business and markets like Trader Joes are extremely profitable you nitwit.

When I was a kid, a twinkie in my Mork from Ork lunchbox was a daily thing. Now kids have healthier snacks. When my daughter was a freshman, they had vending machines with things like candy bars and cupcakes. 2 years later my subs at the same school and those machines are gone. Soda machines as well.

Not all, but enough. Plus add in you can get "walmart" brand twinkies for less because they're made in China. That's what's really killing these companies, but Obama doesn't live in Xhina, so can't blame them.
"Meet me and my foot"...best threat ever.




Edited by clydefrog0371 on 11-17-12 03:03 PM. Reason for edit: No reason given.
 
Badlands92
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11-17-12 03:25 PM - Post#1486319    


    In response to clydefrog0371

Oh clydieboy, do you think the average twinkie eater two years is now having hummus on organic sunflower loaf now from Trader Joe's?

Sure, SOME people are more health conscious and improving their diet. But, America keeps becoming F-A-T-T-E-R and I doubt it's because there is too much coconut water or too many fiddle ferns in our diets.
I expect to play every day. That's our job. You go out there every day and contribute in some way.

- Jason Kendall, May 5, 2010


 
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