Countdown Clocks

Countdown Clocks

Posts tagged "Bankruptcy"

Hostess will proceed with liquidation, a bankruptcy judge ruled Wednesday, according to Bloomberg.

Ben Popken, of NBC News, also reported the news on Twitter, quoting the judge as saying “Sadly… proceed to liquidation.” The move comes just one day after a last-ditch effort at mediation between Hostess and the Baker’s Union broke down.

h/t: Huffington Post

 

Massively insane liar and union-hater Dana Loesch misleadingly blames unions (typical for her) for Hostess Brands’s possible bankruptcy and taking away her precious Twinkies. Her biased Big “Journalism” article contains lots of falsehoods and no facts as always.

I’m from Ozark country and it is against the law for any home south of Rolla to have a Twinkie-less pantry. Alright, so maybe not “against the law,” but I’ve yet to see a pantry without one. All my kin abided by this unspoken rule. Because of my history with the snack cake, I was dismayed, to say the least, when news hit that Hostess was trying to stave off bankruptcy. I was further dismayed that they sort of obfuscated the reason why.


I’m sorry, but I call BS.
You’re Hostess. It’s not difficult to sell creme-filled heaven snacks and America isn’t exactly eating healthier. If anything, America is eating leaner because the price of everything has increased eleventy-fold because the cost of energy is passed to us, the consumers. Now for the truth: this is what Hostess cited as the real reason behind their move against bankruptcy.

Higher energy and labor costs. Likely promises made to union bosses that the company is unable to keep because inflated wages and inflated energy prices are eating profits and everyone knows wages and sustainability come from profits.

USA Today finally adds further down the page:
Additionally, Hostess employees are unionized while most of its competitors aren’t. As a result, Hostess has high pension and medical benefit costs.
Until you reached the middle of the story and put two and two together, you’d have figured that the company is tanking due to eating habits.


Dear Ms. Loesch, unions are not to blame for the possible bankruptcy of Hostess Brands, you nimrod.

Who else joins in on the pile-on against unionization? AFA’s leading nutjob Bryan Fischeron Twitter, joined in on the chorus of blaming Hostess Brands’s unionization for their possible bankruptcy.





Now, the real facts about Hostess’s possible bankruptcy, the facts that Loesch, Fischer, and the other anti-union hacks don’t tell you:

USA Today:
NEW YORK (AP) – Just like many Americans, the maker of Twinkies, Sno Balls and Wonder Bread is trying to lose the fat. 

Hostess Brands is hoping to take a bite out of its high costs as it heads back into bankruptcy protection for the second time in less than a decade. Hostess has enough cash to keep stores stocked with its Ding DongsHo Hos and other snacks for now. But longer term, the 87-year-old company has a bigger problem: health-conscious Americans favor yogurt and energy bars over the dessert cakes and white bread they devoured 30 years ago. 

"The iconic status of Twinkies is partly this perception that there’s nothing real in it," said Ken Albala, professor of history at the University of the Pacific, in Stockton, Calif., who specializes in food history. "It’s this cake filled with an unidentifiable sugary cream filling that never goes bad."

Hostess has other problems, too.

In Hostess’ Chapter 11 filing on Wednesday, the company said its rivals have combined and expanded their reach, heightening competition in the snack space. Hostess’ competitors range from Bimbo Bakeries, which makes Entenmann’s baked goods, and McKee Foods, which make Little Debbie snack cakes. It also faces competition from larger food makers like Sara Lee and Kraft Inc.

Additionally, Hostess employees are unionized while most of its competitors aren’t. As a result, Hostess has high pension and medical benefit costs. The company has 19,000 employees and operates in 48 states.

Hostess did not announce layoffs but spokesman Lance Ignon said Wednesday that the company will make future decisions “in the best interest of the company.”

CEO Brian Driscoll said the Hostess is working to reach a consensual agreement with its unions to modify its collective bargaining agreements. Hostess also hopes to modernize its systems, fleets and plants to keep pace with customer needs.

"This company has tremendous potential if we can remove the barriers to success," Driscoll said.

The Teamsters Union, which represents about 7,500 of Hostess’ delivery drivers and merchandisers, said in a statement on Wednesday that it is also committed to working toward a solution.

The company’s filing comes just two years after its predecessor emerged from bankruptcy proceedings. That company, called Interstate Bakeries and based in Kansas City, Mo., filed for bankruptcy protection in 2004 and changed its name to Hostess Brands after it emerged in 2009.


h/t: DanaBusted.blogspot.com