HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » Latest Breaking News (Forum) » Hostess May Avoid Bankrup...
Introducing Discussionist: A new forum by the creators of DU

Mon Nov 19, 2012, 03:57 PM

Hostess May Avoid Bankruptcy

Source: Think Progress

CNBC and Reuters are reporting that Hostess and the bakers’ union have agreed to mediation, avoiding bankruptcy for the maker of Twinkies and Ho Hos. Bargaining will begin tomorrow, but if the talks don’t produce an agreement, liquidation will go forward on Wednesday.

Hostess announced last week that it will go out of business, arguing that disputes with striking union workers are forcing the company out of business. On Monday, at a hearing on Hostess’ request to begin shutting down, a bankruptcy judge “asked whether he should preside over mediation” between the two parties.

Hostess had planned to request that the judge approve a plan that would have allowed it to pay $1.75 million in bonuses to 19 of its executives, who had already received pay raises earlier this year. Bankruptcy could result in “the firing of thousands of employees” and would force the company “to shut down 36 bakeries, 242 depots, 216 retail stores, and 311 hybrid depot-store facilities.”



Read more: http://thinkprogress.org/economy/2012/11/19/1217321/hostess-may-avoid-bankruptcy/

10 replies, 2428 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 10 replies Author Time Post
Reply Hostess May Avoid Bankruptcy (Original post)
octoberlib Nov 2012 OP
geomon666 Nov 2012 #1
JustABozoOnThisBus Nov 2012 #3
geomon666 Nov 2012 #5
JustABozoOnThisBus Nov 2012 #2
cosmicone Nov 2012 #9
bluedigger Nov 2012 #4
apocalypsehow Nov 2012 #6
Panasonic Nov 2012 #7
LaPera Nov 2012 #8
RoxyNexus Nov 2012 #10

Response to octoberlib (Original post)

Mon Nov 19, 2012, 04:00 PM

1. I wouldn't sit down with these pigs

But that's just me.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to geomon666 (Reply #1)

Mon Nov 19, 2012, 04:03 PM

3. It's a job

sometimes you eat the losses.

That's bargaining.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to JustABozoOnThisBus (Reply #3)

Mon Nov 19, 2012, 04:07 PM

5. There's nothing to gain though

Management has been clear about this. They don't care about the employees and are simply just raping the company of all of its assets. Now I understand a job is a job and this last ditch effort could net you a few more weeks, maybe a month or two before you're fired anyway, of some income. But at what point do you just say screw it, and try to seek employment elsewhere?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to octoberlib (Original post)

Mon Nov 19, 2012, 04:02 PM

2. My heart goes out ...

... to those speculators who bought out the stores' supplies of Twinkies, in hopes of making a killing on eBay.

Ho Ho.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to JustABozoOnThisBus (Reply #2)

Mon Nov 19, 2012, 04:34 PM

9. No worries

Twinkies have a half life of 17,000 years.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to octoberlib (Original post)

Mon Nov 19, 2012, 04:07 PM

4. Suddenly, the executives are interested in negotiations, when their thieving bonuses are at risk.

Fuckers.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to octoberlib (Original post)

Mon Nov 19, 2012, 04:12 PM

6. I know a Hostess employee, and she is really worried about helping her family make ends meet

if her job is really gone for good. Here's hoping the company does the right thing and mediates in good faith with the baker's union so a deal can be reached.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to apocalypsehow (Reply #6)

Mon Nov 19, 2012, 04:20 PM

7. The owner is a vulture captialist

 

and needs to fuck off and die.

Repeatedly.

No bonuses may be granted for bankruptcy and liquidiation. Liquidation means just that: Selling off your fucking assets to other companies that may buy it for a penny to the dollar.

In other words, Hostess does not have any money to pay bonuses to their executives. As a matter of fact - I *strongly* suggest a massive cut on all executives pay to minimum wage and tie it with worker productivity - Happy workers means more money.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to octoberlib (Original post)

Mon Nov 19, 2012, 04:29 PM

8. Hostess is badly run - But blame the workers!!

Hostess filed bankruptcy in 2004 and again in 2012 - looks like they have their eye on keeping the worker pension plan promise and management will reap the benefits by keeping the pension fund, unfunded....And who do you think keeps that money....A few of the higher up executives who get filthy rich and ALWAYS put the blame publicly on the working peoples unions.....just look at Hostess' liquidation plan....Hostess management gets all the money and Hostess workers get nothing including no pension plan as promised - many are long time workers at Hostess.

Never admitting the same old story, they got greedy & fucked up and the fact their corporation is badly run.

November 19, 2012 2:00 am EST - Iconic baked treats maker Hostess Brands, Inc. (PrivCo Private Company Ticker: TWINKIEP), owner of popular brands such as Twinkies, Ding Dongs and Wonder Bread, requested U.S. Bankruptcy Court authorization last Friday for liquidation. The closure of the iconic, 82-year old business comes on the heels of an ongoing national strike by the Bakery, Confectionery, Tobacco Workers and Grain Millers Union (Hostess Brands' second largest union) which started on November 9. Behind the curtains of the workers' relations issues which eventually led to Hostess Brands' downfall are the company's financial woes, with revenue plunging from $3.06 billion in 2006 to just $2.45 billion in 2011, a 20% drop. In addition, Hostess Brands had total liabilities of over $1.43 billion versus cash balance of just $40.4 million, with approximately $2 billion in unfunded pension liabilities. These figures are a recipe for disaster and are what eventually led to Hostess Brands' demise.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to octoberlib (Original post)

Mon Nov 19, 2012, 05:52 PM

10. Hostess is already in Bankruptcy

 

It was the bankruptcy judge who suggested a last stab at mediation before liquidation.

Mediation is NOT arbitration, either side or both can walk.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread