mom_dl6
If you haven't heard yet (No more Twinkies)
by mom_dl6
November 16, 2012 at 12:55 PM


File photo of a twin pack of Hostess Twinkies and CupCakes, PAUL J. RICHARDS, AFP, Getty ImagesBy Tanya Agrawal, Reuters

Hostess Brands, the bankrupt maker of Twinkies and Wonder Bread, said it has sought court permission to go out of business after failing to get wage and benefit cuts from thousands of its striking bakery workers.

Hostess said a national strike by members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union that began last week had crippled its ability to produce and deliver products at several facilities.

The liquidation of the company will mean that most of its 18,500 employees will lose their jobs, Hostess said on Friday.

The 82-year-old company said it took the decision to shut down after determining that not enough employees had returned to work by a deadline on Thursday.

The company, which filed for bankruptcy in January for the second time since 2004, said it had filed a motion with U.S. Bankruptcy Judge Robert Drain in White Plains, New York, for permission to shut down and sell assets.

The Irving, Texas, company has 565 distribution centers and 570 bakery outlet stores, as well as the 33 bakeries. Its brands include Wonder, Nature's Pride, Dolly Madison, Drake's, Butternut, Home Pride and Merita, but it is probably best known for Twinkies -- basically a cream-filled sponge cake.

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

"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," Rayburn added.

Union President Frank Hurt said on Thursday that the crisis at the company was the "result of nearly a decade of financial and operational mismanagement" and that management was trying to make union workers the scapegoats for a plan by Wall Street investors to sell Hostess.

Hostess said its debtor-in-possession​ lenders had agreed to allow the it to continue to have access to $75 million to fund the wind-down process.

"There's no way to soften the fact that this will hurt every Hostess Brands employee. All Hostess Brands employees will eventually lose their jobs - some sooner than others," Rayburn said in a letter to employees.

The company has canceled all orders in process with its suppliers and said any product in transit would be returned to the shipper.

In its filing with the court, the company said it would have incurred a loss of between $7.5 million and $9.5 million from November 9 to November 19 in lost sales and increased costs.

"These losses and other factors, including increased vendor payment terms contraction, have resulted in a significant weakening of the debtors' cash position and, if continued, would soon result in the debtors completely running out of cash," it said.

Hostess had already reached agreement on pay and benefit cuts with the International Brotherhood of Teamsters, its largest union.

Replies

  • eesmommy
    November 16, 2012 at 12:56 PM
    Don't eat them so it doesn't affect me, but I do feel for those that love them.
  • marilyn623
    November 16, 2012 at 12:58 PM
    How does a company like that go bankrupt? Crazy. Hubbys gonna be pissed about the twinkies
  • mom_dl6
    by mom_dl6
    November 16, 2012 at 12:59 PM

    Yeah me either (hubby loves them) i just think it's sad that a company like this would be in a situation like this and Even more job losses :(

    Quoting eesmommy:

    Don't eat them so it doesn't affect me, but I do feel for those that love them.


  • 4noodles4me
    November 16, 2012 at 1:05 PM
    NSeriously? I'm sorry but those workers deserve to lose their jobs. Most are making $20 +an hr plus benefits and now their stubborn greedy butts will be in the unemployment office! Serves them right. Hostess will show Unions its a two way street you don't want to help reach a solution then get out. Normally I wouuldnt want anyone to lose a job but if your greed gets the best of you then you deserve it. There are A LOT of people in this Country that would be grateful for a 10 dollar an hour job. See ya Twinkies I for one never would pay $4 a box for your cakes.
  • taKENheart
    November 16, 2012 at 1:06 PM

     image

    Anyone ever make them homemade before?

  • _WC_Mama
    November 16, 2012 at 1:06 PM

    I think it's sad,they have been around for years..I will always remember getting these cup cakes in my school lunches when I was in Elementary School...

    My kids have had Twinkies maybce 3 times,they do like them,but they will survive withought them

  • sarah.xo
    November 16, 2012 at 1:07 PM
    NO!
  • mom_dl6
    by mom_dl6
    November 16, 2012 at 1:10 PM

    Hahahahahahahaha love it clapping

    Quoting taKENheart:

     image

    Anyone ever make them homemade before?


  • kayandjsmom
    November 16, 2012 at 1:12 PM

    I hate twinkies but I know a lot of people who love them, including my husband. My FB news feed is blowing up over the twinkies. It does suck for the people who love them.

  • LittleBirdFly
    November 16, 2012 at 1:13 PM

    I used to eat them years ago! I feel sad for all the jobs that are gone now!

    Quoting _WC_Mama:

    I think it's sad,they have been around for years..I will always remember getting these cup cakes in my school lunches when I was in Elementary School...

    My kids have had Twinkies maybce 3 times,they do like them,but they will survive withought them