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Wed Nov 21, 2012, 01:58 PM

 

Hostess Liquidation To Proceed, Bankruptcy Judge Rules

Source: Huffington Post

Hostess Liquidation To Proceed, Bankruptcy Judge Rules

Posted: 11/21/2012 12:30 pm EST Updated: 11/21/2012 1:13 pm EST


Hostess will proceed with liquidation, a bankruptcy judge ruled Wednesday, according to Bloomberg.

Ben Popken, of NBC News, also reported the news on Twitter, quoting the judge as saying "Sadly… proceed to liquidation." The move comes just one day after a last-ditch effort at mediation between Hostess and the Baker's Union broke down.

Read more: http://www.huffingtonpost.com/2012/11/21/hostess-liquidation_n_2171078.html



The right wing's revenge. Take it out on the people. 18,000 lives destroyed, and it is not gonna stop there by a long shot. They don't care. They would rather go out of business then to deal with unions.

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Arrow 32 replies Author Time Post
Reply Hostess Liquidation To Proceed, Bankruptcy Judge Rules (Original post)
Great Caesars Ghost Nov 2012 OP
iamthebandfanman Nov 2012 #1
Great Caesars Ghost Nov 2012 #5
liberal N proud Nov 2012 #2
jtuck004 Nov 2012 #3
SoapBox Nov 2012 #4
eggplant Nov 2012 #6
Auggie Nov 2012 #7
former9thward Nov 2012 #13
Maine-ah Nov 2012 #31
jeff47 Nov 2012 #14
Panasonic Nov 2012 #8
FarCenter Nov 2012 #20
Caroline-Vivienne Nov 2012 #9
dwilso40641 Nov 2012 #10
Caroline-Vivienne Nov 2012 #17
jeff47 Nov 2012 #15
Caroline-Vivienne Nov 2012 #16
bread_and_roses Nov 2012 #23
Caroline-Vivienne Nov 2012 #24
bread_and_roses Nov 2012 #27
SoCalMusicLover Nov 2012 #11
PoliticAverse Nov 2012 #12
jckelly Nov 2012 #18
hrmjustin Nov 2012 #26
ForgoTheConsequence Nov 2012 #28
jckelly Nov 2012 #32
jeff47 Nov 2012 #19
It-Gets-Better Nov 2012 #21
FiveGoodMen Nov 2012 #22
Stargazer09 Nov 2012 #29
elbloggoZY27 Nov 2012 #25
Ken Burch Nov 2012 #30

Response to Great Caesars Ghost (Original post)

Wed Nov 21, 2012, 01:59 PM

1. of course they dont care

the people making these decisions are still going to walk away with huge kick backs and tons of cash :p

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Response to iamthebandfanman (Reply #1)

Wed Nov 21, 2012, 02:08 PM

5. sad thing is...

 

Many of the 18,000 lives destroyed are close to retirement age.

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Response to Great Caesars Ghost (Original post)

Wed Nov 21, 2012, 02:01 PM

2. The problem is that the business world has been rigged to make it just as profitable to liquidate as

it is to operate.

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Response to Great Caesars Ghost (Original post)

Wed Nov 21, 2012, 02:08 PM

3. Well, there are 18,000 trained people with unemployment benefits for two years, perhaps.


Maybe they could figure out a way to cooperate for their own good, create some competition? Because the alternative may be serving coffee and selling insurance to each other.

Time to look to their future...

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Response to Great Caesars Ghost (Original post)

Wed Nov 21, 2012, 02:08 PM

4. And just like Detroit (if they had been left to "just go bankrupt")...

there are sub contractors and suppliers, that are going to be hurt big time!

Ah yes..."MANAGEMENT"! Dirty, thieving, stealing BASTARDS.

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Response to Great Caesars Ghost (Original post)

Wed Nov 21, 2012, 02:13 PM

6. It's not so much a liquidation as squeezing out the creamy filling. n/t

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Response to Great Caesars Ghost (Original post)

Wed Nov 21, 2012, 02:24 PM

7. Someone should put a few Twinkies away in a time capsule ...

people may want to know how they taste 1000 years from now.

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Response to Auggie (Reply #7)

Wed Nov 21, 2012, 03:36 PM

13. A person did do that.

His name was Bill Clinton. President Bill Clinton put a Twinkie in a millennium time capsule in 1999 along with a piece of the Berlin Wall, a World War II helmet and a pair of Ray Charles’ sunglasses. “When it’s opened in 2100, will people know what a Twinkie is?” asked the Associated Press at the time.

http://capoliticalnews.com/2012/11/18/twinkies-a-tribute-and-obituary/

I would not want to taste that after a 100 years.

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Response to former9thward (Reply #13)

Thu Nov 22, 2012, 12:20 AM

31. There is a 37 year old Twinkie at a school in Maine

http://bangordailynews.com/2012/11/21/news/hancock/38-year-old-twinkie-worlds-oldest-still-a-sweet-treat-at-blue-hill-school/

(snip)

A nearly 40-year-old Twinkie sits in a wood-and-glass case in an office at GSA, where it has been a school fixture since 1976, when chemistry teacher Roger Bennatti placed it on top of his chalkboard for an experiment to observe decay (or lack thereof) in preserved foods. The Twinkie sat there for nearly 30 years, until Bennatti retired in 2004.

When the teacher left, he passed the torch … er, Twinkie, to Libby Rosemeier, who had been a student in Bennatti’s class the day the experiment began and had gone on to become a teacher at GSA. Now she’s the dean of students and caretaker of Bennatti’s Twinkie.

Bennatti’s retirement sparked interest in his ancient cake. The Twinkie’s tale first was reported in the Bangor Daily News, but it wasn’t long before it was featured on BBC, NPR, the New York Times, USA Today and countless other media channels. The oldest Twinkie in the world had become the most famous.

“It’s positive publicity for GSA,” said Bennatti in an interview Wednesday. “I always point out to people that no one knows who the heck I am, but they do know about the Twinkie.”


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Response to Auggie (Reply #7)

Wed Nov 21, 2012, 03:50 PM

14. It should be noted that this liquidation doesn't end the Twinkie.

They still make Twinkies and Wonder bread in Canada. The trademarks are owned by a different company in Canada.

(Not to mention there's a lot of companies circling Hostess to buy the brands)

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Response to Great Caesars Ghost (Original post)

Wed Nov 21, 2012, 02:30 PM

8. Bimbo will buy the company

 

for pennies on the dollar, and sell Twinkies.

eBay twinkies aren't worth the effort.

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Response to Panasonic (Reply #8)

Wed Nov 21, 2012, 04:38 PM

20. They'll buy the brand and bake and sell Twinkies

But they don't need the old bakeries or the bakers -- they already have high-tech bakeries.

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Response to Great Caesars Ghost (Original post)

Wed Nov 21, 2012, 02:58 PM

9. A few questions...

Why didn't the union approve the deal and then let the members use that time to look for another job or quit? I ask this because they only represented 5500 people, yet their decision affects 18000 people.

Would not an agreement now with an agressive campaign to find better jobs for their members (and allow those who want to stay to remain) during this crappy contract period have been a better option for all of the workers?

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Response to Caroline-Vivienne (Reply #9)

Wed Nov 21, 2012, 03:15 PM

10. The employees have

been giving back for 8 years while management was driving the co. into the ground.
Getting bonuses for bankrupting the brand.

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Response to dwilso40641 (Reply #10)

Wed Nov 21, 2012, 04:08 PM

17. That's really horrible.

I don't see what that has to do with the Union not taking an option to keep the plant open (for the other poor drones who have chosen to stay) and instead having their guys quit en masse, instead of taking everyone out (even the other little guys who did nothing wrong and still wanted their jobs).

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Response to Caroline-Vivienne (Reply #9)

Wed Nov 21, 2012, 03:52 PM

15. Not really.

It's easier to look for work when you aren't spending all day at a factory. Plus those workers all get unemployment, so there will be some $$ coming in.

Additionally, someone will buy up the various Hostess brands and start making the stuff again. It's likely that they'll want to use some of the Hostess factories instead of building new ones. And might as well hire the employees who know how to run the factory.

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Response to jeff47 (Reply #15)

Wed Nov 21, 2012, 04:03 PM

16. Ok, so they are taking a calculated risk.

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Response to Caroline-Vivienne (Reply #9)

Wed Nov 21, 2012, 08:03 PM

23. There is so much - misunderstanding - in your post that I hardly know where to start

First, brief recent history:

http://www.aflcio.org/Blog/Organizing-Bargaining/BCTGM-Members-at-Hostess-Strike-Baker

Frank Hurt, president of the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM) says:

Hostess Brands is making a mockery of the labor relations system that has been in place for nearly 100 years. Our members are not just striking for themselves, but for all unionized workers across North America who are covered by collective bargaining agreements.

BCTGM says the company has ceased making contractually obligated payments to the Hostess workers’ pensions since July 2011 and has pocketed approximately $160 million—money earned by and owed to its dedicated workforce.

... BCTGM members across the country have taken dramatic wage and benefit concessions and watched as 21 Hostess plants were shut down and thousands of jobs were lost...

...Instead, according to the union, the money has gone towards executive bonuses and payments to the hedge fund that owns Hostess brands.


Here's a fact sheet: http://bctgm.org/PDFs/HostessFactSheet.pdf

Do you suggest that workers never draw a line in the sand? They should just meekly take whatever crumbs the company offers? Maybe live in the Company Barracks too, like they do in China - oh, and buy their goods at the "Company Store" too, why not? Why have a union then? A union exists to enable the collective strength of workers to stand up for fair wages, health and safety, etc. through the collective bargaining process. If workers never stand their ground (through striking when all else fails) how long do you think that they would retain any power? If unions had acted as you suggest, we would not have an eight hour day, health and safety protections at work, days off, sick time, etc., etc. - organized labor fought for those things we take for granted today.

As for "an agressive campaign to find better jobs for their members" - it is not "the union" and "their" members - the members ARE the union. A union is not a social service agency, it is a membership organization. Oh - and I'm sure prior to the "race to the bottom" and Vulture Capitalist tactics the Company seems to have been engaged in for a good few years now - these WERE good jobs. Like lots of other jobs in US that used to be good jobs before the 1% decided to turn us all into serfs. Your prescription is a recipe for acquiescence in that process.

There is an appalling lack of understanding in the US of both Labor history and even exactly what a union is - so I don't blame you for lack of understanding. But I would think you might want to consider both the short and long term implications of your suggestions. After all ...

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Response to bread_and_roses (Reply #23)

Wed Nov 21, 2012, 08:41 PM

24. In this case, couldn't they draw a line in the sand by individually quitting?

...since their decision puts 13,000 OTHER hardworking folks out of a job also...

What about those other folks? Their families? Their financial needs?

Did anyone at this union think about whether THEY wanted (or needed) to stay employed?

And yes, I am aware of the history of Union/Labor strife.

Now let's get back to the present. How will the majority of those other 13,000 workers make their next mortgage payment?









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Response to Caroline-Vivienne (Reply #24)

Wed Nov 21, 2012, 09:48 PM

27. So, you think individual and collective actions have the same power?

And I find it hard to imagine how "aware" you can be of "Union/Labor strife" if you can even phrase a question that way. It does not even parse out sensibly in context. "Who is the "they" who could conceivably quit "individually?" An individual is singular. A union is a collective. Any individual - union member or not - can quit a job at any time. The union is a collective of members who make decisions collectively and act on them collectively.

And it was not the union's decision to strike that "put 13,000" other people out of a job. THAT was the company's doing.

Do you think union members make a decision to strike lightly? Being on strike is a terrible hardship. Do you think those workers don't wonder where their next mortgage payment is coming from?

Read the background on the strike and it becomes plain, IMHO, exactly what the Company was doing.

http://www.alternet.org/bye-twinkies-and-workers-rights-hostess-blames-striking-workers-it-liquidates-romney-style

Workers were being asked to accept cuts, but top executives had gotten massive raises as Hostess was about to enter bankruptcy. Investments in the company's future that had been promised as part of restructuring after the previous bankruptcy were never made. And as for the management, put in place by the private equity companies that now own Hostess, Hurt says:

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 CEO’s in eight years, none of whom with any bread and cake baking industry experience, was the prescription for failure.


Blaming the workers for the company's liquidation is the company line.

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Response to Great Caesars Ghost (Original post)

Wed Nov 21, 2012, 03:20 PM

11. Glad That Extra Day Really Helped

Monday - Go back to mediation, and try to make this work

Tuesday - We tried, it's hopeless.

Wednesday - O.K. Management, at least you really tried.

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Response to Great Caesars Ghost (Original post)

Wed Nov 21, 2012, 03:31 PM

12. "The right wing's revenge" - I wouldn't call the people behind hostess "the right wing"...

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Response to PoliticAverse (Reply #12)

Wed Nov 21, 2012, 04:25 PM

18. So

 

Just because they are D's, and give to D's, doesn't mean they aren't right wing. Its a big party, and not all of it supports labor or progressive, left causes.

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Response to jckelly (Reply #18)

Wed Nov 21, 2012, 09:46 PM

26. Welcome to DU!

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Response to jckelly (Reply #18)

Wed Nov 21, 2012, 10:13 PM

28. Uh

Do you know who Dick Gephardt is? He is one of the most labor friendly politicians ever. Although his dealings here are slightly suspicious.

Mr. Gephardt’s son was added to the board of Hostess and paid an annual fee of $100,000.




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Response to ForgoTheConsequence (Reply #28)

Thu Nov 22, 2012, 09:19 AM

32. once again so what?

 

I suppose since such a stalwart Democrat was a part of this, then those workers must be getting what they deserve. I don't care which private equity firm was/is doing this. It would be wrong if it was Bain, it is wrong if it Ripplewood.

Too many people have their allegiance to the wrong things. I feel no obligation to bend over backwards to justify what is being done to these workers and this union, just because "our guys" are the ones doing it. The company was in trouble, and while asking the workers and wage slaves to take cuts in pay and benefits, the good "labor friendly" types and their friends were taking more and more.

The Confectionery, Tobacco Workers & Grain Millers International Union pointed out that the company’s new chief executive was paid $2,550,000, up from $750,000. Another “executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256,” the union said.

But hey, I get it, they are on our side, they deserve it, after all they worked long and hard to try and figure out how much money the hourly employees needed to give back.

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Response to PoliticAverse (Reply #12)

Wed Nov 21, 2012, 04:30 PM

19. Those are the ones trying to bail it out the last time

The ones who drove the company into the ground were definitely not liberals. The company's been limping along for more than a decade.

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Response to Great Caesars Ghost (Original post)

Wed Nov 21, 2012, 04:59 PM

21. Sad

Very Sad

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Response to Great Caesars Ghost (Original post)

Wed Nov 21, 2012, 05:25 PM

22. They never should have stopped making the boysenberry fruit pies

The ones with the purple wrapper.

Writing's been on the wall since then

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Response to FiveGoodMen (Reply #22)

Wed Nov 21, 2012, 11:58 PM

29. Yes!

Those were my absolute favorites! I have greatly missed those.

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Response to Great Caesars Ghost (Original post)

Wed Nov 21, 2012, 09:43 PM

25. Not in Touch

 

Sad day for Hostess and Twinkies.

America in Decline.

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Response to Great Caesars Ghost (Original post)

Thu Nov 22, 2012, 12:11 AM

30. The Hostess workers should occupy the factories. And as many other people of good will as possible

should join them.

That may be the only way to save these jobs...take the factories and run them themselves.

They know how to do that much better than any of "the suits" do.

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