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Hostess closing its doors (UPDATE)

Sad news but Hostess has been struggling for a while and not all that long ago the union game up wages and benefits. At some point you can only expect your workers to give up so much before you need to make some changes at the top and change your business model.
As for stocking up on Twinkies, why? Someone will buy the company or at least pieces of the company and Twinkies will go out like nothing ever happened. Granted, they might be made in China with lead-based food coloring but if youre eating Twinkies, chances are being healthy isnt a big priority anyways.
 
Keep your ears to the ground you twinkie and ding dong lovers. The end may not necessarily be here for HB. Cheers!
 
interlooper said:
Keep your ears to the ground you twinkie and ding dong lovers. The end may not necessarily be here for HB. Cheers!
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Just read a article in the local paper (we have a bakery here) about how Hostess management and the union are trying mediation. :fingers-crossed:
 
I have a feeling that with Hostess saying they are closing shop the union will come in and negotiate and make a deal. I don't think anyone want's 18000 people out of work.
 
Scrap Iron said:
I have a feeling that with Hostess saying they are closing shop the union will come in and negotiate and make a deal. I don't think anyone want's 18000 people out of work.
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Unfortunately, I think that is unlikely. While there is a glimmer of hope, it is likely a little too late. This way, at least the bankrutpcy judge (and all parties) can at least say, "hey, I tried, but...". The fact of the matter is that if the previously-interested party and/or secured lenders don't want to finance it the rest of the way, its not gonna happen. Piecemeal liquidation and winddown.
 
hostess sucks anyway.
little debbie snacks are where it's at. fudge rounds and zebra cakes FTW!
 
tnolan said:
hostess sucks anyway.
little debbie snacks are where it's at. fudge rounds and zebra cakes FTW!
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fudge yeah!! Zebra cakes FTW!
 
http://lifeinc.today.com/_news/2012...s-union-mediation-fails-liquidation-next?lite


By TODAY news and wire services

Hostess Brands said Tuesday night that it failed to reach a deal in mediation with the Bakery, Confectionary, Tobacco and Grain Millers Union. The bankrupt maker of Twinkies and Ding Dongs said it will have no further comment until a hearing scheduled for Wednesday at 11 a.m ET before the U.S. Bankruptcy Court for the Southern District of New York.

A union representative did not immediately respond to a request for comment.

The ailing company, which also makes Wonder Bread and Drake's cakes, sought permission from bankruptcy court on Monday to liquidate its business, claiming that its operations were crippled by the bakers' strike and that winding down was the best way to preserve its dwindling cash. On Friday, Hostess closed 33 factories and announced plans to lay off 18,500 workers over an acrimonious labor dispute. But on Monday, U.S. Bankruptcy Judge Robert Drain urged the parties to come to an agreement through mediation. Most insiders had anticipated that the two sides would come to an agreement, but the union and company could not find common ground.

The company has blamed union wages and pension costs for contributing to its unprofitably. Hostess Chief Executive Gregory Rayburn has also said the company's labor contracts have deterred would-be bidders for the company and its assets.

Here's what each side previously agreed to:

Teamster Union concessions:
•8 percent immediate pay cuts, which would go down to 5 percent next year
•Hostess will reduce contributions to the health plan by 17 percent
•Hostess will freeze pension contributions until 2015

Management concessions:
•Gave Teamsters 25 percent share of company stock
•Gave Teamsters two seats on the board
•Gave Teamsters a $100 million claim in bankruptcy
•Won't permanently freeze pensions contributions
•Former CEO's head on a platter: board ousted Brian Driscoll in March, 2012, after it was revealed his salary was tripled to $2.5 million at the same time he demanded steep pay cuts for workers

The next step is to go back to the bankruptcy judge, who will hold in his hands the fate of the 82-year-old company and its well-known brands. In the coming months, several different scenarios could play out, depending on whether a buyer emerges for the company's brands.

"There's a lot of goodwill that comes with the brand name," said John Pottow, a bankruptcy law professor at the University of Michigan. "A lot of companies could buy the name and recipe for Twinkies and make them."

Potential buyers wouldn't have to make the snack foods at Hostess factories either. They could make them in new facilities not burdened under old worker agreements that, for instance, required employing separate drivers for two different kinds of Hostess products rather than trucking them together. Among the alternatives:

Twinkies get absorbed by a big American conglomerate
Some of the likely suitors include ConAgra, Tastycakes maker Flowers Food, or McKeeFoods, makers of Little Debbie. These companies would likely seek to attach the Twinkies to a more efficient delivery system. For instance, does it really make sense to deliver Twinkies in their own special Twinkies trucks?

"Twinkie The Kid" trades his cowboy hat for a sombrero...
A Mexican firm, like Grupo Bimbo, which Forbes reports put in a bid for Hostess several years ago, could move production south of the border. A South American company could get access to lower sugar prices and a cheaper non-unionized workforce. Or, they could keep product in the US, but make them in a non-unionized factory.

...or develops a Canadian accent.
A Canadian company called Saputo has the Canadian rights to Hostess brand products. They're not affected at all by the Hostess liquidation and they could conceivably arrange it to sell Twinkies in America.

Twinkies dies
Pure speculation: No one buys the Twinkies recipe. Fans are forced to make their own at home. Prices for unopened boxes of Twinkies skyrocket on eBay. An "Occupy Twinkies" movement launches to build an unauthorized Twinkies knockoff factory with no leaders and online-only sales... and is surprisingly profitable.

Court filings showed that the company is asking for permission to pay $1.75 million in retention bonuses to 19 different managers as an incentive for sticking around during the liquidation process. The U.S. trustee, Hope Davis, an official appointed by the Justice Department to protect the interest of creditors, objected to this idea, filing a motion on Monday which argued that Hostess officials "have failed to demonstrate that the proposed bonuses are true incentive bonuses and not disguised retention payments."

Davis also moved to convert the bankruptcy from a Chapter 11 to a Chapter 7. That would take control of the wind-down proceedings away from Hostess and into the hands of a court-appointed trustee.

In their joinder filed Monday, the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union said that "blaming the BCTGM for the Company’s liquidation is no more credible than blaming an isolated gust of wind for blowing over a tree, when it was the tree’s shallow, rotted root structure that was actually responsible."

But kids, both young and old, don't care about the blame game. They want to know whether they'll still be able to find their favorite creme-filled yellow cake treat on the shelves. The decades-old brand is legendary in consumers' minds and evokes strong feelings of nostalgia in every bite. Some still remember the brand's signature character "Twinkie The Kid" lassoing it up on early television commercials and proclaiming "Big Delight in Every Bite!" The foodstuff has even entered the legal canon. "The Twinkie Defense" was famously, and successfully, used to argue that a suspect on trial for murder suffered from depression and that his high-sugar diet was a symptom of this mental state.

Ben Popken and Reuters contributed to this report.
 
Twinkies buyer says cakes could return by summer
Hostess stopped making cakes, breads in late November

Hostess is moving ahead with plans to sell its Twinkies, and one of the new owners says the spongy cream-filled snacks could be back on shelves by summer. The bankrupt company had earlier picked a $410 million joint offer from Metropoulos & Co. and Apollo Global Management as the "stalking horse" bid to set the floor for an auction.

In a document filed in U.S. bankruptcy court on Monday, however, Hostess Brands said the auction would not be held because no other qualified bids were submitted for the cakes, which include Ding Dongs and Ho Hos. In a statement, Metropoulos & Co. CEO and founder Dean Metropoulos said the firm was looking forward to having "America's favorite snacks back on the shelf by this summer."

A spokesman for Hostess said the company had no comment on the lack of competing bids for the snack cakes. Previously, Hostess CEO Greg Rayburn had predicted the process would be "wild and wooly."

A representative for Apollo, whose investments include the fast-food chains Carl's Jr. and Hardee's, declined to comment.

Hostess had also canceled an auction for its Wonder and other major bread brands after no competing offers were made. Those breads are being sold to Flowers Foods, which is based in Thomasville, Ga., and makes Tastykakes and Nature's Own bread. The final sales of the breads and Hostess snack cakes are set to be approved in bankruptcy court on March 19.

McKee Foods, which makes Little Debbie snack cakes, was picked as the lead bidder for Drake's cakes, which include Devil Dogs, Funny Bones and Yodels. The deadline to submit competing offers for those snack cakes is Tuesday, with an auction set for Friday.

Hostess, based in Irving, Texas, stopped making its cakes and breads in late November after it announced it was going out of business and closing its plants following years of financial struggles.


Read more: http://www.kmbc.com/news/kansas-cit...19285250/-/10kdcye/-/index.html#ixzz2NM5QCvA0
 
Wooooooooooooooooooooooooooooooooo, too bad I wont eat them anyway.
 
Tallahassee will be happy.

twinkiesdiscountinued-ifeelforyoutallahasseeireallydo_4cb594_4241098.jpg
 
Smallville said:
Twinkies buyer says cakes could return by summer
Hostess stopped making cakes, breads in late November

Hostess is moving ahead with plans to sell its Twinkies, and one of the new owners says the spongy cream-filled snacks could be back on shelves by summer. The bankrupt company had earlier picked a $410 million joint offer from Metropoulos & Co. and Apollo Global Management as the "stalking horse" bid to set the floor for an auction.

In a document filed in U.S. bankruptcy court on Monday, however, Hostess Brands said the auction would not be held because no other qualified bids were submitted for the cakes, which include Ding Dongs and Ho Hos. In a statement, Metropoulos & Co. CEO and founder Dean Metropoulos said the firm was looking forward to having "America's favorite snacks back on the shelf by this summer."

A spokesman for Hostess said the company had no comment on the lack of competing bids for the snack cakes. Previously, Hostess CEO Greg Rayburn had predicted the process would be "wild and wooly."

A representative for Apollo, whose investments include the fast-food chains Carl's Jr. and Hardee's, declined to comment.

Hostess had also canceled an auction for its Wonder and other major bread brands after no competing offers were made. Those breads are being sold to Flowers Foods, which is based in Thomasville, Ga., and makes Tastykakes and Nature's Own bread. The final sales of the breads and Hostess snack cakes are set to be approved in bankruptcy court on March 19.

McKee Foods, which makes Little Debbie snack cakes, was picked as the lead bidder for Drake's cakes, which include Devil Dogs, Funny Bones and Yodels. The deadline to submit competing offers for those snack cakes is Tuesday, with an auction set for Friday.

Hostess, based in Irving, Texas, stopped making its cakes and breads in late November after it announced it was going out of business and closing its plants following years of financial struggles.


Read more: http://www.kmbc.com/news/kansas-cit...19285250/-/10kdcye/-/index.html#ixzz2NM5QCvA0
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That's still not soon enough!!!
 
IceyShanks said:
That's still not soon enough!!!
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It's soon enough for those fools who bought them on ebay to realize that it was not money well spent!
 
Twinkles are scheduled to make a come back on 7/15/2013. According to the local news here in DFW the tag line will be....." The sweetest comeback in the history of ever."
 
I am going to Walmart right now to see if they have them down here in Savannah.

Sent from my DROID RAZR using Tapatalk 2
 
Good golfing Carma coming my way.....

Good golfing Carma coming my way.....

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:blob:
 
I'm just happy Hostess is making Twinkies again......:act-up:
 
PB&J on Wonder Bread! I lived on that for quite awhile in my youth!
 
Interesting, but forgive me as I'm just not sure how this relates to golf.
I also didint even know it ever left the shelves in the first place so its like double news to me ..lol
 
rollin said:
Interesting, but forgive me as I'm just not sure how this relates to golf.
I also didint even know it ever left the shelves in the first place so its like double news to me ..lol
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How it relates to golf? My bag has a cooler section. In it, I keep energy goodies to give me a boost walking the course. Wonder Bread Helps build strong bodies 8 Ways. Now I can get back to carrying PBJ on Wonder bread. You see.... a golfer's must. :)
 
I haven't had square wonder bread in forever.
 
malemotives said:
How it relates to golf? My bag has a cooler section. In it, I keep energy goodies to give me a boost walking the course. Wonder Bread Helps build strong bodies 8 Ways. Now I can get back to carrying PBJ on Wonder bread. You see.... a golfer's must. :)
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PB&Js on the course are perfect! A cooler bag, that's what I need :D
 
Just bought a box!

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