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Twinkies Maker Hostess Going Out of Business

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#1
The Joker

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You gotta love those labor unions.... Another iconic company destroyed by union strongarming. Hopefully the Union is proud. They went on strike over a 2% drop to their pensions and now they don't get anything. Their pensions are now liquidated to pay the debt and they lose their jobs and everyone loses a Hostess product they grew up with.


Twinkies Maker Hostess Going Out of Business

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” CEO says


Hostess, the makers of Twinkies, Ding Dongs and Wonder Bread, is going out of business after striking workers failed to heed a Thursday deadline to return to work, the company said.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” Hostess CEO Gregory F. Rayburn said in announcing that the firm had filed a motion with the U.S. Bankruptcy Court to shutter its business. “Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”

Hostess Brands Inc. had warned employees that it would file to unwind its business and sell off assets if plant operations didn't return to normal levels by 5 p.m. Thursday. In announcing its decision, Hostess said its wind down would mean the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores in the United States.

The Irving, Texas-based company had 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.

In an interview with Fox Business, CEO Gregory Rayburn said many workers had already crossed picket lines this week to go back to work despite warnings by union leadership that they'd be fined.

"The problem is we don't have enough crossing those lines to maintain normal production," said Rayburn, who first joined Hostess earlier this year as a restructuring expert. Hostess said that production at about a dozen of the company's 33 plants had been seriously affected by the strike. Three plants were closed earlier this week.

The 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 had argued that workers must make concessions for it to exit bankruptcy and improve its financial position.

The company, founded in 1930, was fighting battles beyond labor costs, however. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating. Hostess also makes Dolly Madison, Drake's and Nature's Pride snacks.
If the motion is granted, Hostess would begin closing operations as early as Tuesday.

"Most employees who lose their jobs should be eligible for government-provided unemployment benefits," Hostess said.
Copyright Associated Press / NBC 5 Dallas-Fort Worth


Twinkies Maker Hostess Going Out of Business | NBC 5 Dallas-Fort Worth

Edited by Neo, 16 November 2012 - 07:40 AM.

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#2
The Joker

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http://www.myfoxdfw....-to-be-laid-off
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#3
nova

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We have triumphed in our disput with the evil corporation.  ThA celebration will be held tomorrow at the local unemployment office....

#4
ECDawg

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View Postnova, on 16 November 2012 - 09:36 AM, said:

We have triumphed in our disput with the evil corporation.  ThA celebration will be held tomorrow at the local unemployment office....

I would LMAO if it wasn't so sad and so stupid.  Looks like the baker's union didn't believe what they were told WOULD happen and then it did.  Radical unions strike again..........reminds me of the Machinists Union forcing the closure of Eastern Airlines many years ago.........
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#5
ECDawg

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It looks like this is just the beginning of another rise in unemployment......

http://www.boortz.co...s-claims-going/
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#6
Scream

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This is bullshit. Now what the hell are we going to eat after the nuclear holocaust? Zombieland is looking more and more likely.

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#7
LSU Aaron

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Hopefully someone like Nabisco, Kellogs, etc. buys these product lines!

#8
gchamblee

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this is why i cant stand unions.

#9
Herschel Talker

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They should hire the elves
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#10
AUTiger25

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Twinkies will never be the same..

#11
GatorHunter

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Awesome...now those unionized employees can go home with their chests poked out...tell their children, no Christmas this year kids...but we sure maintained our solidarity.

#12
scottie

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View PostLSU Aaron, on 16 November 2012 - 12:42 PM, said:

Hopefully someone like Nabisco, Kellogs, etc. buys these product lines!

Even if they did the workers who held out still won't get their jobs back.  These companies will use their own workers.  And they prob wouldn't taste the same.

#13
Herschel Talker

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#14
SECats

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There is no need for unions nowadays...unless the goal is to make companies close their doors.
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#15
scottie

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View PostSECats, on 21 November 2012 - 11:44 AM, said:

There is no need for unions nowadays...unless the goal is to make companies close their doors.
And to make tons of money off the members.  If i were part of a union i would want the fellow co worker in charge not someone who doesnt work there.