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Posts tagged "Hostess Brands"

Stand down Twinkies hoarders, you can start eating your secret stash.

Twinkies will hit store shelves nationally by late July, Michael Cramer, executive vice president of Hostess Brands LLC told NBC News on Thursday. “We expect to be making and selling in July,” he said. “Probably the later half of the month before the product hits the stores.”

All of the classic Hostess snack brands will return, some making their return in August and September. Hostess Donettes and some of the snack cakes will be among the first to return. And “Twinkies for sure,” Cramer said.

In November, all 36 Hostess Brands, Inc., plants shut down after an extended stand-off with the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union. That Hostess company has almost completely wound down its operations, selling its assets in pieces. The bulk of the Hostess Snacks brands the public knows best — Twinkies, Cup Cakes, Ho Hos, Zingers, Ding Dongs and Suzy Q’s — were purchased in April for $410 million by hedge funds Apollo Global Management and Metropoulos & Co. Other Hostess lines, such as Wonder bread, went to affiliates of Flowers Foods, while its Beefsteak bread brand was snatched up by Grupo Bimbo, S.A.B. de C.V.

It is the new company, Hostess Brands, LLC, that will start hiring this weekend to resume operations with 200 employees at the Dolly Madison Bakery in Columbus, Ga., one of the locations shuttered in November.

As the hiring resumes, it will not be in conjunction with the unions, Cramer said. “We’re sure not going to invite the unions in. We don’t have to do it,” he said. Though of course nothing prevents the workers from unionizing down the line, he said.

But when Twinkies return to the shelves after an absence of more than six months, it will find competition.

Flowers Foods, Inc., which purchased some of Hostess’ other assets, has its own Twinkies lookalikes. Its Blue Bird brand sells Bingles while its Mrs. Freshley label sells Dreamies cream-filled cakes. McKee Foods’ Little Debbie brand also makes its own Twinkies twin called a Cloud Cake. The name’s even trademarked.

A spokesman for Mexico-based Grupo Bimbo, the world’s largest bread baker and the owners of Sara Lee and Entenmann’s brands in the United States, on Wednesday declined to say whether it was considering its own Twinkies competitor in the United States. But should Grupo Bimbo decide to jump into the fray, it has a pretty good options on hand.

Bimbo already makes a Twinkies lookalike in Mexico called Submarinos, which are available with vanilla, chocolate or strawberry filling. Bimbo Bakeries USA since 1997 has been importing strawberry-filled Submarinos into the United States under its Marinela brand catering to Hispanic customers. In 2012 it started importing the vanilla ones as well, a company spokesman said.

After this story was originally published, a reader sent a picture of another Twinkies clone he said recently hit shelves in Los Angeles. The packaging of the new Golden Creme Cakes state they are made by the Sara Lee division owned by Bimbo Bakeries USA. However, a spokesman for the company declined to confirm they are new Sara Lee products.

The hard-core Hostess fan will return to Hostess, but the discretionary snackers will be the key market to regain, predicted Gary Karp, the executive vice president at Technomic Inc., a food industry research and consulting firm. “Their absence has allowed people to try a variety of products that are out there,” Karp said.

h/t: NBCNews.com

NEW YORK (CNNMoney) — A bankruptcy judge has given final approval for the sale of Twinkies, Wonder Bread and many of Hostess Brands’ other assets, clearing the way for the iconic products to return to shelves.

Hostess snacks — including Twinkies, Ho Hos, Ding Dongs and Zingers — were sold for $410 million to a joint venture of private equity firms Apollo Global Management and Metropoulos & Co. They expect to return the product to store shelves this summer.

Wonder Bread and most of Hostess’ other bread brands was purchased by baker Flowers Foods for $360 million. The company has yet to give a date for when those breads will be back in stores. On Thursday, Judge Robert Drain also approved the $31.9 million sale of the Beefsteak bread brand to baker Grupo Bimbo, a Mexico-based company that is one of the largest U.S. bakers.

None of these products have been manufactured since Hostess, which was already in bankruptcy court, went out of business during a strike by members of its bakers’ union. The company has been selling off its brands since then to try to raise money for creditors. Thursday’s sales account for more than $800 million.

Flowers is buying 20 bakeries and about 38 depots with its purchase; Apollo and Metropoulos are buying five bakeries.

Court approval is still pending for some other winning bidders, including privately held McKee Foods’ purchase of the Drake’s snack business for $27.5 million, and United States Bakery’s $28.85 million winning bid for Hostess’ Sweetheart, Eddy’s, Standish Farms, and Grandma Emilie’s bread brands, along with four bakeries.

h/t: FOX2now.com

Hostess Brands is close to announcing that it has picked two investment firms — C. Dean Metropoulos & Co. and Apollo Global Management — as the lead bidders for its Twinkies and other snack cakes, according to a source close to the situation.  

The so-called stalking horse bid would be for more than $400 million, according to the Wall Street Journal. It would serve as the baseline offer for the business and could be topped by others at an auction.  A judge would have to approve any final sale.  

Earlier this month, Hostess chose a $390 million offer by Flowers Foods , maker of Tastykake products, as the stalking horse bid for several brands including Wonder bread and Drake’s.

 On Monday, Hostess said it chose McKee Foods Corp, maker of Little Debbie snack cakes, as the initial bidder for its Drake’s cakes, which include Ring Dings, Yodels and Devil Dogs. It also chose United States Bakery as the lead bidder for four of its smaller bread brands plus bakeries, equipment and depots. 

h/t: NBCNews.com

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

Hostess Brands Inc. lived to die another day.

The maker of Twinkies and Ding Dongs said late Tuesday that it failed to reach an agreement with and its second biggest union. As a result, the company will continue with a hearing on Wednesday in which a bankruptcy court judge will decide if the company can liquidate

The talks had come as a surprise after Hostess declared last week it would move to wind down its business and start selling off its assets in bankruptcy court. After making its case to liquidate on Monday, however, the bankruptcy judge hearing the case noted the two sides hadn’t yet tried resolving their differences through private mediation. The judge noted that 18,000 jobs were on the line and urged the company and union to try to resolve their differences.

The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, which represents about 30 percent of the company’s workers, says the company’s demise was the result of years of mismanagement, however, and that workers have already given steep concessions over the years.

H/T: AP

Hostess Brands and the Bakery, Confectionery, Tobacco Workers and Grain Millers’ International Union agreed to mediate on Monday, according to a tweet from CNBC. The agreement will reportedly prevent a Hostess liquidation, which the company announced Friday could be imminent.

The Bakers’ Union had been fighting a proposal to significantly cut worker pay and pensions, and Hostess claimed that the striking workers made it impossible for the company to produce its products.

h/t: Huffington Post

The REAL facts about why Hostess shut down.

Rush Limbaugh is blaming President Obama for the fact that Hostess could not come to an agreement with its striking employees and decided lay off 18,500 employees by closing the plant. In Limbaugh’s mind, Obama has Twinkie blood on his hands.

Transcript from Rush Limbaugh:

Rush Limbaugh: Look, here I’m already being asked, “Are you gonna talk about Hostess?” Yeah, I’m gonna talk about Hostess. You know what, 18,500 people gone, Hostess Twinkies, Ding Dongs, shut down. Some people might think it’s a buy opportunity if you want to get in the Ding Dong business. But folks, if you need an indication that the Democrats will never compromise on anything, look at this. Hostess is going out of business because of unions. Now, that’s 18,500 jobs. You would think in this economy that somebody might want to show the ability to compromise if only to fool people. They won’t even compromise on this.

Unions are the Democrat Party. Trumka is at the White House again today. Won’t even compromise to save 18,500 jobs. Are you kidding me? Obama couldn’t step in here even for the optics of it? I mean, yesterday he saved New York. Today he could save Ding Dongs. He could save Twinkies, except at the White House Michelle’s probably celebrating, ’cause this is just rotten, no good food to her. But, see, I think they wanted this, folks. I think they wanted Hostess bye-bye. And you know why? They wanted this to happen because this is just going to create more dependents on unions and the government. It’s just gonna create more dependents. So this is all fine with Barry.

I know nobody understands me. I’m doing this program with a whole different mind-set now. Snerdley’s in there panicking. I’m saying mind-set. As I do this program I’m imagining how I’m being heard by all these uneducated, ill-educated, maleducated young people, and it’s fun, and I’m sure that they’re throwing daggers at their radio because they just heard me criticize Obama on this Hostess thing. Anyway it’s a funny thing. It’s actually a build-out on some of the things that we were discussing yesterday about the battles that we face really being cultural as well as, if not more than, politics. Anyway, the Hostess thing is what it is. It’s gone. We knew it was coming. It just illustrates there’s no desire to compromise.


Limbaugh’s blaming of Obama and unions leaves out a couple of important facts.

Hostess is dead due to Bain style management that has decided to maximize their profits by liquidating the company. In short, the “job creators” decided to make more money for themselves by killing 18,500 jobs.

If President Obama would have intervened, Limbaugh would have called him a socialist who hates the free market. Since Obama didn’t intervene, he is a socialist who is trying to create more dependents on the federal government. Either way, Rush Limbaugh’s psycho interpretation of The Day The Twinkies Died is complete and utter nonsense.

Unions didn’t kill Hostess, people who believe in the Mitt Romney school of management killed Hostess. America’s so-called job creators will pocket additional millions while 18,500 workers will be out of a job. Those are facts that Rush Limbaugh and right wing media bubble cronies don’t want to discuss.

h/t: PoliticusUSA

Today is a sad day for those that worked for Hostess Brands and for workers’ rights. 

Today is a sad day for those that worked for Hostess Brands and for workers’ rights. 

This morning, we have received tragic news that Hostess Brands will shut down, in retaliation for the striking workers standing up for their rights.

AP.org:

IRVING, Texas (AP) — Hostess Brands says it is going out of business, closing plants that make Twinkies and Wonder Bread and laying off all of its 18,500 workers.

The Irving, Texas, company says a nationwide worker strike crippled its ability to make and deliver its products at several locations.

Hostess had warned employees that it would file a motion in U.S. Bankruptcy Court to unwind its business and sell assets if plant operations didn’t return to normal levels by Thursday evening.

Laura Clawson at Daily Kos on Hostess lying to its workers regarding the strike and closures:

Workers at more than 20 Hostess plants have gone on strike after overwhelmingly rejecting the company’s demands for major wage and benefits concessions. In response, Hostess is claiming that it may have to close plants because of the strike. The Bakery, Confectionery, Tobacco Workers, and Grain Millers union has a convincing argumentThat’s a lie, though.

Of course, right-wing loons will blame this on the unions.

#RIPHostess

(cross-posted from Daily Kos)

IRVING, Texas (AP) — Hostess Brands says it is going out of business, closing plants that make Twinkies and Wonder Bread and laying off all of its 18,500 workers.

The Irving, Texas, company says a nationwide worker strike crippled its ability to make and deliver its products at several locations.

Hostess had warned employees that it would file a motion in U.S. Bankruptcy Court to unwind its business and sell assets if plant operations didn’t return to normal levels by Thursday evening.

The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.

Sad day.

h/t: AP.org

Hostess Brands said it likely won’t make an announcement until Friday morning on whether it will move to liquidate its business, after the company had set a Thursday deadline for striking employees to return to work.

The maker of Twinkies, Ding Dongs and Wonder Bread had warned employees that would file a motion in U.S. Bankruptcy Court to unwind its business and sell off assets if plant operations didn’t return to normal levels by 5 p.m. EST Thursday. That would result in the loss of about 18,000 jobs.

A spokesman for Hostess, Lance Ignon, said the company would likely make an announcement Friday after assessing plant operations Thursday evening.

Hostess, based in Irving, Texas, has already reached a contract agreement with its largest union, the International Brotherhood of Teamsters. But thousands of members in its second-biggest union went on strike late last week after rejecting in September a contract offer that cut wages and benefits. Officials for the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union say the company stopped contributing to workers’ pensions last year.

Hostess announced on Monday the closures of three bakeries due to the nationwide strike. The facilities employ 627 workers, according to the Associated Press.

A representative for the bakery-workers union did not respond to request for comment. The Teamsters meanwhile are urging the smaller union to hold a secret ballot on whether to continue striking. Citing its financial experts who had access to the company’s books, the Teamsters say that Hostess’ warning of liquidation is “not an empty threat or a negotiating tactic” but a certain outcome if workers continue striking.

The Teamsters also noted that the strike put its union members in the “horrible position” of deciding whether to cross picket lines.

Hostess, a privately held company, filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade. The company cited increasing pension and medical costs for employees as one of the drivers behind its latest filing. Hostess has argued that workers must make concessions for it to exit bankruptcy and improve its financial position.

As much as I like Twinkies and other Hostess brands, I think that the striking workers are right on this one. I stand with the striking workers! 

H/T: CBSNews.com