Posts tagged "RIP Hostess"

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

DETROIT (AP) — Twinkie lovers, relax.

The tasty cream-filled golden spongecakes are likely to survive, even though their maker will be sold in bankruptcy court.

Hostess Brands Inc., baker of Wonder Bread as well as Twinkies, Ding Dongs and Ho Ho’s, will be in a New York bankruptcy courtroom Monday to start the process of selling itself.

The company, weighed down by debt, management turmoil, rising labor costs and the changing tastes of America, decided on Friday that it no longer could make it through a conventional Chapter 11 bankruptcy restructuring. Instead, it’s asking the court for permission to sell assets and go out of business.

But with high brand recognition and $2.5 billion in revenue per year, other companies are interested in bidding for at least pieces of Hostess. Twinkies alone have brought in $68 million in revenue so far this year, which would look good to another snack-maker.

Hostess has said it’s received inquiries about buying parts of the company. But spokesman Lance Ignon would not comment on analysts’ reports that Thomasville, Ga.-based Flowers Foods Inc. and private equity food investment firm Metropoulos & Co. are likely suitors. Metropoulos owns Pabst Brewing Co., while Flowers Foods makes Nature’s Own bread, Tastykake treats and other baked goods. Messages were left for spokesmen for both companies on Sunday.

"We think there’s a lot of value in the brands, and we’ll certainly be trying to maximize value, both of the brands and the physical assets," Ignon said Sunday. He said it’s possible some of Hostess’ bakeries will never return to operation because the industry has too much bakery capacity.

Then last week thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike after rejecting the company’s latest contract offer. The bakers union represents about 30 percent of the company’s workforce.

By that time, the company had reached a contract agreement with its largest union, the International Brotherhood of Teamsters, which this week urged the bakery union to hold a secret ballot on whether to continue striking. Although many bakery workers decided to cross picket lines this week, Hostess said it wasn’t enough to keep operations at normal levels.

The company filed a motion to liquidate Friday. The shuttering means the loss of about 18,500 jobs. Hostess said employees at its 33 factories were sent home and operations suspended. Its roughly 500 bakery outlet stores will stay open for several days to sell remaining products.

News of the decision caused a run on Hostess snacks at many stores around the country, and the snacks started appearing on the Internet at inflated prices.

h/t: AP.org

The REAL facts about why Hostess shut down.

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