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Author Topic: The Economic Downturn..  (Read 121349 times)

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Online RVR II

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Re: The Economic Downturn..
« Reply #660 on: November 16, 2012, 07:46:43 AM »
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Hostess to Liquidate, Lay Off 18,500 After Crushing Union Fight

Published November 16, 2012


Failing to persuade striking employees to return to work, Hostess Brands disclosed plans on Friday to liquidate its assets and lay off most of its 18,500 workers, bringing the 82-year-old maker of Wonder Bread and Twinkies to the end of its line.

The painful decision to wind down the Irving, Texas.-based private company follows a nationwide strike that Hostess said severely constrained its operations.

Hostess said delivery of its products, which include Ding Dongs and CupCakes, will continue and its retail stores will keep their lights on for several days to sell already-baked products.

“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 Rayburn said in a statement.

As a result of the liquidation, Hostess said it will “move promptly” to lay off “most” of its 18,500 employees and focus on “selling its assets to the highest bidders.”

The company will now be forced to close its 33 bakeries, 565 distribution centers, 5,500 delivery routes and 570 bakery outlet stores throughout the U.S.

The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union pushed back against the Rayburn blaming the liquidation on the unions.

“The truth is that Hostess workers and their Union have absolutely no responsibility for the failure of this   company.  That responsibility rests squarely on the shoulders of the company’s decision makers,” Frank Hurt, BCTGM International Union President, said in a separate statement released on Wednesday.

Founded in 1930, Hostess owns a slew of well-known brands, including Drakes, Dolly Madison, Twinkies, Ding Dongs, Ho Ho’s and Wonder.

It’s not clear what, if any, company or companies will step in to scoop up those brands, but it seems likely potential bidders will at least inquire.

Hostess said its lenders have agreed to provide the company with access to the $75 million financing facility to fund the sale and wind down process.

After filing for Chapter 11 bankruptcy in January, BCTGM rejected a final offer in September from Hostess aimed at slashing costs and allowing the company to emerge from bankruptcy.

While the bankruptcy court gave Hostess the power to unilaterally change the BCTGM’s collective bargaining agreements in early October, the work stoppage forced the company to shutter three plants on November 12.

A company-set deadline for enough employees to return to the work came and went on 5 p.m. ET Thursday, paving the way for Hostess to decide to liquidate pending approval from the court.

“A sufficient number of the Debtors' baking facilities have become inoperable, and the Debtors are no longer able to fulfill customer orders or sell product at their retail stores,” Hostess said in its 65-page bankruptcy filing.

Due to the “material impairment” of its business operations, Hostess said it will “soon lose access to the funding” needed to run the company and several remedial provisions of its final debtor-in-possessor order were triggered.


Yeah the union just cost all those people their jobs.. I'm  actually mad that I may never get to eat another Twinkie again :angry:


Offline Tripe

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Re: The Economic Downturn..
« Reply #661 on: November 16, 2012, 07:49:59 AM »
Well what will I use for analogies to explain the amount of supernatural activity in a given area now?


Offline Thrifty

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Re: The Economic Downturn..
« Reply #662 on: November 16, 2012, 07:52:42 AM »
Twinkies only have a shelf life of about a month.

What I hate is that whether or not the union can be justifiably blamed for this, the Right is going to pounce all over this to augment their position that ALL unions are universally bad.

The Hostess brand is too valuable to disappear forever; some healthier rival is gonna snatch it up for sure.


Offline Pak-Man

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Re: The Economic Downturn..
« Reply #663 on: November 16, 2012, 07:56:08 AM »
Well what will I use for analogies to explain the amount of supernatural activity in a given area now?

Imagine that this layoff represents the normal amount of psycho-kinetic energy in the New York area. According to this morning's sample, there would be layoffs of approxamately 18,500 employees.

That's a big lay-off!


Offline Kete

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Re: The Economic Downturn..
« Reply #664 on: November 16, 2012, 08:05:03 AM »
I was just talking to my mom about this, and she seriously said, "Well, you can blame Obama for that one."  I thought for sure she was joking, but she wasn't.  It makes me so mad that my parents can be so ignorant.


Offline wurwolf

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Re: The Economic Downturn..
« Reply #665 on: November 16, 2012, 08:05:45 AM »
OBAMA TOOK AWAY MY DING DONG!

More fun from TV's Frank:

Quote
If Hostess Snack Cakes can't survive in a world that includes Me, Chris Christie & Honey Boo Boo, something is very wrong.
Bonhead #2
fs!!



Offline Kete

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Re: The Economic Downturn..
« Reply #666 on: November 16, 2012, 08:07:18 AM »
So I bought a couple boxes of Twinkies, some Ding Dongs and Ho Hos.  I went to two stores and I couldn't find any Sno Balls.


Offline Nunyerbiz

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Re: The Economic Downturn..
« Reply #667 on: November 16, 2012, 08:08:54 AM »
From what I've read... the company was just too antiquated... They were well behind the eight ball with their pension structure, management was a mess, they had something like 400 seperate agreements with a dozen separate unions... Just a mess. I consider myself pro-union, but this shit was just a dinosaur... It wasn't going to be saved, especially in light of an aging population that is generally not feeding as much insanely unhealty shit to their kids anymore. Sales were down 25% since the first time they hopped on the Chapter 11 train back in 2004.


Offline Darth Geek

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Re: The Economic Downturn..
« Reply #668 on: November 16, 2012, 08:14:13 AM »

What I hate is that whether or not the union can be justifiably blamed for this, the Right is going to pounce all over this to augment their position that ALL unions are universally bad.
Oh they've already started yesterday.

And yeah, Kete, that "blame Obama" attitude is disturbing. Especially coming from the side that is trying to call out Obama for (correctly) blaming the economic problems on Bush.



Offline Kete

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Re: The Economic Downturn..
« Reply #669 on: November 16, 2012, 08:16:14 AM »
From what I've read... the company was just too antiquated... They were well behind the eight ball with their pension structure, management was a mess, they had something like 400 seperate agreements with a dozen separate unions... Just a mess. I consider myself pro-union, but this shit was just a dinosaur... It wasn't going to be saved, especially in light of an aging population that is generally not feeding as much insanely unhealty shit to their kids anymore. Sales were down 25% since the first time they hopped on the Chapter 11 train back in 2004.

So it's Michelle Obama's fault!!


Online RVR II

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Re: The Economic Downturn..
« Reply #670 on: November 16, 2012, 08:17:51 AM »
Didn't they make Cup Cakes as well ???
NNNNNOOOOOOOOOO!!!!! :'(


Offline wurwolf

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Re: The Economic Downturn..
« Reply #671 on: November 16, 2012, 08:18:35 AM »
Yeah, I agree, RVR. It's really too bad that so many people lost their jobs in this tough economic climate.
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Online RVR II

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Re: The Economic Downturn..
« Reply #672 on: November 16, 2012, 08:22:50 AM »
Yeah, I agree, RVR. It's really too bad that so many people lost their jobs in this tough economic climate.
I agree. I really dislike my job these days but was glad I found one so quick..

There are a couple of former managers that work with me and make less than I do and I really feel bad for them. They are only temporarys and the company won't hire them on permanent because of their ages (upper 50's) I believe though the company states they don't age-discriminate. :-\


Offline Bob

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Re: The Economic Downturn..
« Reply #673 on: November 16, 2012, 08:26:17 AM »
Maybe people will not eat this crap food and eat things that are actually good for them.  I have not eaten any of these in decades.....and I am not making that up.


Offline Thrifty

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Re: The Economic Downturn..
« Reply #674 on: November 16, 2012, 08:27:33 AM »
I was just talking to my mom about this, and she seriously said, "Well, you can blame Obama for that one."  I thought for sure she was joking, but she wasn't.  It makes me so mad that my parents can be so ignorant.

When business succeeds, it's capitalism and good business.
When business fails, it's the government's fault.