Hostess brand to shut down

http://money.cnn.com.../hostess-closing/

Hostess Brands -- the maker of such iconic baked goods as Twinkies, Devil Dogs and Wonder Bread -- announced Friday that it is asking a federal bankruptcy court for permission to close its operations, blaming a strike by bakers protesting a new contract imposed on them.

Management is blaming the union, but this is just the final step in a long decline that mostly management's fault. The company is now owned by a group of investment firms that where likely just seeing how much money they could extract before selling the company off anyway. Apparently management was trying to impose salary cuts on employees while increasing executive pay, and this pissed the Baker's union off enough they where willing to risk going under rather then take the cut. However, since the owners where just waiting to sell the company anyway, they where not going to budge.

Jay

Hostess Brands, the maker of sweet snacks like Twinkies that filed for Chapter 11 bankruptcy protection last week, will ask a bankruptcy judge today to approve a plan that will allow it to pay $1.75 million in bonuses to 19 of its executives. HostessÂ decision to file for bankruptcy came amid disputes with its union workers, who threatened a strike that Hostess said imperiled the companyÂs finances. The unions are now protesting HostessÂ request for the bonuses, though they are unlikely to prevail, CNN Money reports:

Hostess Brands will ask a bankruptcy judge on Monday for approval to shut down the company and pay $1.75 million in executive bonuses.

Unions representing workers at the maker of Twinkies, Wonder Bread and DrakeÂs snacks are arguing against the bonuses.

[...]

Under the plan, bonuses ranging from $7,400 to $130,500 will be paid to 19 executives. The company argues the bonuses are below market rates for such payments.

http://thinkprogress...xecutive-bonuses/

Post #366,327 by jay 11/16/12 10:25:38 AM Reply	Hostess brand to shut down http://money.cnn.com.../hostess-closing/ Hostess Brands -- the maker of such iconic baked goods as Twinkies, Devil Dogs and Wonder Bread -- announced Friday that it is asking a federal bankruptcy court for permission to close its operations, blaming a strike by bakers protesting a new contract imposed on them. Management is blaming the union, but this is just the final step in a long decline that mostly management's fault. The company is now owned by a group of investment firms that where likely just seeing how much money they could extract before selling the company off anyway. Apparently management was trying to impose salary cuts on employees while increasing executive pay, and this pissed the Baker's union off enough they where willing to risk going under rather then take the cut. However, since the owners where just waiting to sell the company anyway, they where not going to budge. Jay
Post #366,328 by boxley 11/16/12 10:31:02 AM Reply	damn, better hustle and get me some wonderbread Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 57 years. meep
Post #366,331 by folkert 11/16/12 10:55:20 AM Reply	Never fear... Kellogg will buy them up. -- greg@gregfolkert.net PGP key 1024D/B524687C 2003-08-05 Fingerprint: E1D3 E3D7 5850 957E FED0 2B3A ED66 6971 B524 687C
Post #366,334 by lincoln 11/16/12 11:08:58 AM Reply	Re: Hostess brand to shut down This is their 3rd bankruptcy in the past 8 years, and in the first two management demanded concessions from the unions (which they gave) and cut nothing from their own compensation. I saw on another web site that the Wall Street Journal stated that Hostess management gave themselves 75% raises since 2011; yet, management whines that it's the unions that are greedy bastards and the reason the company is going under. Imagine yourself being a worker there these past 8 years - this is the third request by management to cut your pay and reduce your benefits. At what point do you say "Fuck it! I'm not bending over and grabbing my ankles any more!" "Chicago to my mind was the only place to be. ... I above all liked the city because it was filled with people all a-bustle, and the clatter of hooves and carriages, and with delivery wagons and drays and peddlers and the boom and clank of freight trains. And when those black clouds came sailing in from the west, pouring thunderstorms upon us so that you couldn't hear the cries or curses of humankind, I liked that best of all. Chicago could stand up to the worst God had to offer. I understood why it was built--a place for trade, of course, with railroads and ships and so on, but mostly to give all of us a magnitude of defiance that is not provided by one house on the plains. And the plains is where those storms come from." -- E.L. Doctorow
Post #366,337 by folkert 11/16/12 12:19:51 PM Reply	If those are the same raises I recall... and Bonuses... when the Investment Infusions happened and they found out about the egregious bonus and raises were scaled back to $1/year total payments. But then the Teamsters got involved and royally screwed things up with money from these people and the Teamsters paid DEBT off versus administrating a retirement fund... Huge Mis-Steps on EVERYONE'S part. -- greg@gregfolkert.net PGP key 1024D/B524687C 2003-08-05 Fingerprint: E1D3 E3D7 5850 957E FED0 2B3A ED66 6971 B524 687C
Post #366,378 by lincoln 11/16/12 5:16:05 PM Reply	more facts here http://mediamatters....-to-scapeg/191440 "Chicago to my mind was the only place to be. ... I above all liked the city because it was filled with people all a-bustle, and the clatter of hooves and carriages, and with delivery wagons and drays and peddlers and the boom and clank of freight trains. And when those black clouds came sailing in from the west, pouring thunderstorms upon us so that you couldn't hear the cries or curses of humankind, I liked that best of all. Chicago could stand up to the worst God had to offer. I understood why it was built--a place for trade, of course, with railroads and ships and so on, but mostly to give all of us a magnitude of defiance that is not provided by one house on the plains. And the plains is where those storms come from." -- E.L. Doctorow
Post #366,389 by folkert 11/16/12 6:59:18 PM Reply	Thanks. Not exactly everything I remember, but a lot that I'd forgotten about also. I had close ties with Wonder Bread and Hostess in the 90s and still have friends that currently "work" there. They've been ticked off about how both the Unions (especially the Teamsters) and Hostess Executive all made blunders of all blunders. Hostess was taken over by Non-Baking industry execs and that in conjunction with the economy downturn starting in about 2004/5 just made Hostess do one bad decision with another and another and another. Execs sent in the Bean counters and forced Vendors to drop prices or be threatened with things like Chinese flour being purchased at much lower cost per ton. ADM and Cargill didn't much like that. So it got to also be a pissing match. Hence, Hostess went continuously downhill. -- greg@gregfolkert.net PGP key 1024D/B524687C 2003-08-05 Fingerprint: E1D3 E3D7 5850 957E FED0 2B3A ED66 6971 B524 687C
Post #366,381 by lincoln 11/16/12 5:50:00 PM Reply	RE: executive raises BCTGM members are well aware that as the company was preparing to file for bankruptcy earlier this year, the then CEO of Hostess was awarded a 300 percent raise (from approximately $750,000 to $2,550,000) and at least nine other top executives of the company received massive pay raises. One such executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256. http://www.sacbee.co...sinformation.html "Chicago to my mind was the only place to be. ... I above all liked the city because it was filled with people all a-bustle, and the clatter of hooves and carriages, and with delivery wagons and drays and peddlers and the boom and clank of freight trains. And when those black clouds came sailing in from the west, pouring thunderstorms upon us so that you couldn't hear the cries or curses of humankind, I liked that best of all. Chicago could stand up to the worst God had to offer. I understood why it was built--a place for trade, of course, with railroads and ships and so on, but mostly to give all of us a magnitude of defiance that is not provided by one house on the plains. And the plains is where those storms come from." -- E.L. Doctorow
Post #366,390 by folkert 11/16/12 7:00:54 PM Reply	That isn't including... The "performance" bonuses for getting out of the first bankruptcy and all of the executives that got silver lined pockets. -- greg@gregfolkert.net PGP key 1024D/B524687C 2003-08-05 Fingerprint: E1D3 E3D7 5850 957E FED0 2B3A ED66 6971 B524 687C
Post #366,413 by Another Scott 11/17/12 8:54:43 AM Reply	Single Jpeg summary. http://bluevirginia....mismanagement.png More at Forbes - http://www.forbes.co...nds-and-twinkies/ (both from http://BlueVirginia.us ) Cheers, Scott.
Post #366,437 by folkert 11/17/12 3:07:07 PM Reply	Nice. -- greg@gregfolkert.net PGP key 1024D/B524687C 2003-08-05 Fingerprint: E1D3 E3D7 5850 957E FED0 2B3A ED66 6971 B524 687C
Post #366,351 by Andrew Grygus 11/16/12 12:59:23 PM Reply	Oh! This is a disaster. Wonder Bread Hostess Twinkies Hostess Snowballs Three of our most iconic "bad food" examples - all gone at once! What shall we do?
Post #366,353 by drook 11/16/12 1:09:16 PM Reply	The Texas State Fair Commission is in emergency session -- Drew
Post #366,356 by folkert 11/16/12 1:18:57 PM Reply	Republic of Texas Fair Commission is in emergency session There... fixed it for you. -- greg@gregfolkert.net PGP key 1024D/B524687C 2003-08-05 Fingerprint: E1D3 E3D7 5850 957E FED0 2B3A ED66 6971 B524 687C
Post #366,359 by lincoln 11/16/12 1:49:45 PM Reply	Re: Hostess brand to shut down Unfortunately however, for the past eight years management of the company has been in the hands of Wall Street investors, "restructuring experts", third-tier managers from other non-baking food companies and currently a "liquidation specialist". Six CEOÂs in eight years, none of whom with any bread and cake baking industry experience, was the prescription for failure. http://www.dailykos....dates?detail=hide "Chicago to my mind was the only place to be. ... I above all liked the city because it was filled with people all a-bustle, and the clatter of hooves and carriages, and with delivery wagons and drays and peddlers and the boom and clank of freight trains. And when those black clouds came sailing in from the west, pouring thunderstorms upon us so that you couldn't hear the cries or curses of humankind, I liked that best of all. Chicago could stand up to the worst God had to offer. I understood why it was built--a place for trade, of course, with railroads and ships and so on, but mostly to give all of us a magnitude of defiance that is not provided by one house on the plains. And the plains is where those storms come from." -- E.L. Doctorow
Post #366,360 by boxley 11/16/12 2:03:31 PM Reply	making crap that the entire world tells you is bad is a recipe for failure as well Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 57 years. meep
Post #366,449 by Another Scott 11/17/12 6:55:45 PM Reply	Driftglass: All of this has happened before. Or, the story of the demise of Brach's candies - http://driftglass.bl...pened-before.html A good read. Cheers, Scott.
Post #366,579 by Ashton 11/21/12 1:04:29 AM Reply	Salon's take: 'Vulture capitalism--not unions--killed Twinkies." http://www.salon.com...emium%29_7_30_110 Hedge funds took profits and piled on millions in debt at Hostess. They created this bankruptcy, not unions BY JAKE BLUMGART
Post #366,586 by lincoln 11/21/12 10:35:15 AM Reply	We've seen this so many times before Hostess Brands, the maker of sweet snacks like Twinkies that filed for Chapter 11 bankruptcy protection last week, will ask a bankruptcy judge today to approve a plan that will allow it to pay $1.75 million in bonuses to 19 of its executives. HostessÂ decision to file for bankruptcy came amid disputes with its union workers, who threatened a strike that Hostess said imperiled the companyÂs finances. The unions are now protesting HostessÂ request for the bonuses, though they are unlikely to prevail, CNN Money reports: Hostess Brands will ask a bankruptcy judge on Monday for approval to shut down the company and pay $1.75 million in executive bonuses. Unions representing workers at the maker of Twinkies, Wonder Bread and DrakeÂs snacks are arguing against the bonuses. [...] Under the plan, bonuses ranging from $7,400 to $130,500 will be paid to 19 executives. The company argues the bonuses are below market rates for such payments. http://thinkprogress...xecutive-bonuses/ "Chicago to my mind was the only place to be. ... I above all liked the city because it was filled with people all a-bustle, and the clatter of hooves and carriages, and with delivery wagons and drays and peddlers and the boom and clank of freight trains. And when those black clouds came sailing in from the west, pouring thunderstorms upon us so that you couldn't hear the cries or curses of humankind, I liked that best of all. Chicago could stand up to the worst God had to offer. I understood why it was built--a place for trade, of course, with railroads and ships and so on, but mostly to give all of us a magnitude of defiance that is not provided by one house on the plains. And the plains is where those storms come from." -- E.L. Doctorow

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