Hostess Brands Says It Will Liquidate

[garbon]

http://dealbook.nytimes.com/2012/11/16/hostess-brands-says-it-will-liquidate/

While Twinkies have a reputation for an unlimited shelf life, the company that makes the junk food does not.

Hostess Brands, the bankrupt maker of cream-filled pastries like Twinkies and Ho Hos, said on Friday that it planned to wind down its operations and sell off its portfolio of well-known brands. The decision comes a week after one of the company's biggest unions went on strike to protest a labor contract.

Friday's decision spells the end of Hostess, an 82-year-old company that has endured wars, countless diet fads and even an earlier Chapter 11 filing. As the national appetite for the junk food waned, the baked-goods maker fell on hard times.

In January, Hostess Brands filed again for Chapter 11, just three years after emerging from the previous restructuring. The company originally hoped to reorganize its finances, principally by cutting labor costs.

But those plans were stymied by the recent labor dispute. The work stoppage by the Bakery, Confectionery, Tobacco Workers and Grain Millers Union affected nearly two-thirds of Hostess's factories across the country. The company first responded by closing three factories, then gave union members until 5 p.m. on Thursday to return to work.

"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," Gregory F. Rayburn, Hostess' chief executive, said in a statement.

Hostess' advisers will soon begin to shut down the company's 33 bakeries and 565 distribution centers. The vast majority of its 18,500 employees will be laid off, according to the company.

The liquidation may not mean the end of Twinkies, Ding Dongs and Wonder Bread. Such sweet treats could find new life under a different owner, once the company begins an auction of its brands and assets.

Well that's probably not what those striking were looking for.

[CountDeMoney]

Hostess has been on the downslide for ages.  Just a matter of time.

Gonna wipe out the Ho-Hos now.

[Maximus]

http://dealbook.nytimes.com/2012/11/16/hostess-brands-says-it-will-liquidate/

While Twinkies have a reputation for an unlimited shelf life, the company that makes the junk food does not.

Hostess Brands, the bankrupt maker of cream-filled pastries like Twinkies and Ho Hos, said on Friday that it planned to wind down its operations and sell off its portfolio of well-known brands. The decision comes a week after one of the company's biggest unions went on strike to protest a labor contract.

Friday's decision spells the end of Hostess, an 82-year-old company that has endured wars, countless diet fads and even an earlier Chapter 11 filing. As the national appetite for the junk food waned, the baked-goods maker fell on hard times.

In January, Hostess Brands filed again for Chapter 11, just three years after emerging from the previous restructuring. The company originally hoped to reorganize its finances, principally by cutting labor costs.

But those plans were stymied by the recent labor dispute. The work stoppage by the Bakery, Confectionery, Tobacco Workers and Grain Millers Union affected nearly two-thirds of Hostess's factories across the country. The company first responded by closing three factories, then gave union members until 5 p.m. on Thursday to return to work.

"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," Gregory F. Rayburn, Hostess' chief executive, said in a statement.

Hostess' advisers will soon begin to shut down the company's 33 bakeries and 565 distribution centers. The vast majority of its 18,500 employees will be laid off, according to the company.

The liquidation may not mean the end of Twinkies, Ding Dongs and Wonder Bread. Such sweet treats could find new life under a different owner, once the company begins an auction of its brands and assets.

Well that's probably not what those striking were looking for.

We have a good friend who worked at one of their plants. The union simply refused to negotiate. Word is they were willing to sacrifice their Hostess employees to strengthen their position elsewhere.

Also apparently the teamsters were crossing the picket lines.

[Brazen]

When I first started reading comics, the Hostess adverts sold me the American Dream.

Decades later I tried a Twinkie. You can keep your American Dream 

I still want to sell jokes and tricks for $$$ and gifts, though, and "See through bones, through clothing!", and start a Sea Monkey farm.

[Maximus]

I'm not sure what a twinkie is. I suppose I could look it up, but I don't really care.

[PDH]

   Now Little Debbie will rule with an iron fist

[Baron von Schtinkenbutt]

  Now Little Debbie will rule with an iron fist

Good.  They make much better products.

[jimmy olsen]

I loved their cupcakes! 

[Barrister]

Fucking unions. 

[viper37]

I checked the Wikipedia article.  Nothing I eat in there, so I'm good!

[DGuller]

Fucking unions. 

Prostitutes unionized too?  Damn. 

[merithyn]

We have a good friend who worked at one of their plants. The union simply refused to negotiate. Word is they were willing to sacrifice their Hostess employees to strengthen their position elsewhere.

Also apparently the teamsters were crossing the picket lines.

We do?

[Eddie Teach]

  Now Little Debbie will rule with an iron fist

Good.  They make much better products.

Oatmeal creme pies.

[lustindarkness]

Tallahassee will be very sad, and pissed that there will be no more twinkies.

[merithyn]

We have a good friend who worked at one of their plants. The union simply refused to negotiate. Word is they were willing to sacrifice their Hostess employees to strengthen their position elsewhere.

Also apparently the teamsters were crossing the picket lines.

We do?

We do!