Hostess Brands Says It Will Liquidate

[Camerus]

Also, I agree with the Honourable CdM.   

[Tonitrus]

It's not always that simple right? I mean my mom has to pay union dues even if she doesn't join the union. I'm pretty sure this is a RtW state. There must be some exceptions. I bet it's not the same in every state either.

The casinos are heavily unionized.  I would be surprised if Nevada were a right to work state.

Casinos are a bad example, as that is the unusual example where the Mob is working both sides of the field.

[dps]

One thing that doesn't make sense about this story is how could it be the case that a tiny fraction of union leadership could be so unrepresentative of the wishes of its members, and its members have utterly no recourse?  Such a system opens the door to so many potential abuses.  Seems like either the law there is totally fucked or, more likely, details are being misrepresented.

Yeah.  That part made sense to me when I was under the impression that the strike started last November--I could see the majority of the union voting to strike at that time, but thinking that they had gotten a reasonable offer from the company since then, and wanting to take the company's offer and go back to work, but not being able to do so because the union leadership wouldn't accept the offer and submit it to a vote.  But if the strike just started this month, it makes no sense, unless the friend is overstating how many of the rank-and-file share his opinion.

[CountDeMoney]

Hostess wins OK to give execs up to $1.75 million in bonuses
A bankruptcy judge approves Hostess' plan to offer bonuses as an incentive for managers to oversee its liquidation. Hostess is talking with 110 potential bidders.
By Tiffany Hsu, Los Angeles Times

November 30, 2012

Hostess Brands Inc., in the midst of winding down its business, won approval Thursday from a federal bankruptcy judge to give as much as $1.75 million in bonuses to its executives.

The money is intended as an incentive for 19 top-level managers to remain with the Twinkies and Ding Dongs maker to oversee its liquidation.

The payouts will be granted only if managers "achieve a set of specific tasks and goals within a specified time frame that are designed to speed and lower the cost of the wind-down," Hostess spokesman Lance Ignon said.

The maximum bonus amount, Ignon said, represents 0.07% of Hostess' revenue and 0.17% of the value of its assets and is below the average for bonuses in comparable bankruptcy cases. Hostess Chief Executive Greg Rayburn would be not be eligible for a bonus, Ignon said.

U.S. Bankruptcy Judge Robert Drain in White Plains, N.Y., also agreed Thursday to grant final approval for Hostess to sell its cult-favorite brands and shut down its operations for good. The company filed for bankruptcy after a battle with the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union. The union accused the company of slashing wages and benefits while bumping up executive pay.

Last week, Drain gave interim approval to the liquidation, which is expected to take about a year. Hostess' closure would result in more than 18,000 workers losing their jobs.

Hostess has received interest from a wide group of bidders, including Hurst Capital, a Florida investment firm that has made an offer. Also reportedly interested are Grupo Bimbo, which owns Sara Lee and Entenmann's, and C. Dean Metropoulos & Co., which owns the maker of Pabst Blue Ribbon beer.

The company is now "in active dialogue with 110 potential bidders, 70 of which have signed nondisclosure agreements," Ignon said. The baker's investment bankers received 10 calls Wednesday alone.

Hostess, which stopped contributing to its pension plans last year, also told the court that it needed to stop paying $1.1 million a month in retiree benefits.

The 82-year-old pastry maker entered bankruptcy for the second time in a decade in January. The Irving, Texas, company said this month that it could no longer function after a nationwide strike by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union.

The union joined a workers' pension fund earlier this week to ask Drain to hand over control of the liquidation process to a Chapter 11 trustee.

They accused Hostess' management of being "woefully unsuccessful in its reorganization attempts" and said a trustee would best protect creditor interests and "support an orderly and timely wind-down."

[Caliga]

Pretty standard.  We've done the same bonus/incentive package shit when we buy a company with their top management.  Whomever holds Hostess's assets wants to see as large a return as possible on what's left of them.

The thing is... I think you understand this stuff, so it's kind of puzzling why you'd post this sort of thing without any commentary, because you know there are a number of idiots around here who have no clue how the corporate world works and will just rage about LOL CAPITOLITSTS!

[merithyn]

LOL CAPITOLITSTS!

[Caliga]

 

[merithyn]

Just didn't want to leave you hangin'.

[CountDeMoney]

The thing is... I think you understand this stuff, so it's kind of puzzling why you'd post this sort of thing without any commentary, because you know there are a number of idiots around here who have no clue how the corporate world works and will just rage about LOL CAPITOLITSTS!

I've made my point.  The GOPtards, vulture capitalist fanbois and other assorted groundings suckered by Wall Street know where I stand.

[Sheilbh]

I'm raging.

[Caliga]

I've made my point.  The GOPtards, vulture capitalist fanbois and other assorted groundings suckered by Wall Street know where I stand.

I'm part of the problem.

[Ed Anger]

The thing is... I think you understand this stuff, so it's kind of puzzling why you'd post this sort of thing without any commentary, because you know there are a number of idiots around here who have no clue how the corporate world works and will just rage about LOL CAPITOLITSTS!

I've made my point.  The GOPtards, vulture capitalist fanbois and other assorted groundings suckered by Wall Street know where I stand.

On Martin bashir's face. LOLOLOL.

[CountDeMoney]

Ed Schultz.  Brats fed like grapes.

[Ed Anger]

I bet Ed Schultz's family doesn't get any thanksgiving turkey. He ate it all.

[katmai]

I've made my point.  The GOPtards, vulture capitalist fanbois and other assorted groundings suckered by Wall Street know where I stand.

I'm part of the problem.

I've been saying that for years.