Hostess Brands (Twinkies) on verge of liquidation

[Astro14]

Originally Posted By: jcwit
Ya it all managements fault, just like its all managements fault production gets moved to china so we can buy cheap stuff.

I watched unions break every major manufacturer in South Bend Indiana.

Wonder how the RV industry manages to continue to grow without unions backing and still pay workers $1000 to $1500 take home per week?


Because they have company leadership that articulates a vision for the company? Because they all recognize the symbiotic relationship between company success and worker success? Because both management and labor have the integrity to mean what they say and keep their word on promises? Because management manages, the workers work, and they both recognize that they're on the same team, trying to achieve that vision, instead of being greedy about pay/bonuses for their own benefit?

It's a radical concept, I know...very difficult to conceptualize, really hard to understand...it doesn't fit into the simplistic "company succeeds = management brilliance, company fails = union fault" drivel that is spouted by so many...

Fascinates me that so many German companies can provide great benefits, good wages and working hours (better than many US companies) and still remain global competitors...

A good friend (with a Harvard MBA) working in Venture Capital said that one thing he sees in dramatically short supply in American companies is leadership...threads like this simply support his observation.

 

[eljefino]

The guys walking the picket lines here say, for about a year now, their paychecks were getting docked for pension contributions that haven't shown up in the pension fund.

So where'd it go?

 

[01rangerxl]

I can't say I'm particularly heartbroken about it. I haven't eaten a Twinkie in years and never really found them to be all that good.

I doubt the product itself will disappear. There's probably still a lot of brand value there, so some company will buy the production equipment and branding. I doubt Twinkies will even be off store shelves.

 

[PandaBear]

Originally Posted By: jcwit
Ya it all managements fault, just like its all managements fault production gets moved to china so we can buy cheap stuff.

I watched unions break every major manufacturer in South Bend Indiana.

Wonder how the RV industry manages to continue to grow without unions backing and still pay workers $1000 to $1500 take home per week?


In this case it has nothing to do with union. They are likely getting similar compensation in the same product category so the competition from China bull [censored] aren't there. You hire the same labor to make twinkies as your competitor hire to make Hershey's chocolate bar, and Hershey's are doing much better, how is that NOT a management issue?

The labor cost may be driving a lot of the production away to China and Mexico, but it is going to happen when manufacturing becomes more expensive due to high standard of living. You can lower production labor cost to $10/hr minimum wage without union and it will still be too expensive vs $2.50 in China or $4 in Mexico, and it is always the union's fault when one company out of the entire industry is failing. I'd buy a bridge before I buy that argument.

 

[VNTS]

Ahh that was on the news and is the Union binkies saying that, I am sure that is not the case or the Maine Attorney general would be in Biddeford asking question, more Union Rhetoric.

Originally Posted By: eljefino
The guys walking the picket lines here say, for about a year now, their paychecks were getting docked for pension contributions that haven't shown up in the pension fund.

So where'd it go?

 

[eljefino]

How are you going to bake bread in china and get it over here before it gets stale?

Twinkies, OTOH...

Hostess is going tango uniform, will not be bailed out, and I commend the unions ahead of time for not going out without a fight and at least presenting their side of the story.

 

[eljefino]

Originally Posted By: VNTS
Ahh that was on the news and is the Union binkies saying that, I am sure that is not the case or the Maine Attorney general would be in Biddeford asking question, more Union Rhetoric.

Originally Posted By: eljefino
The guys walking the picket lines here say, for about a year now, their paychecks were getting docked for pension contributions that haven't shown up in the pension fund.

So where'd it go?

I did not say it was gospel fact.

 

[Tempest]

Quote:
Hostess has roughly $2 billion in unfunded pension liabilities to its various unions' workers

Quote:
The $75 million -- at an interest rate of at least 15% -- was on top of that $860 million ocean of debt (and $1.4 billion of liabilities, compared with less than $1 billion in assets).

http://management.fortune.cnn.com/2012/07/26/hostess-twinkies-bankrupt/

Looks like there was plenty of blame to go around.

 

[Benzadmiral]

Winston Zeddemore: "Tell him about the Twinkie."

Peter Venkman: "What about the Twinkie?"

 

[jcwit]

It ain't just about Twinkies, there are other Hostess products.

http://www.washingtonpost.com/business/t...76e2_story.html

 

[Mr Nice]

Underfunded pension obligations is a ticking time bomb for many companies, States and cities.

jcwit,
Glad to hear the RV industry is picking up.

 

[Astro14]

Originally Posted By: Benzadmiral
Winston Zeddemore: "Tell him about the Twinkie."

Peter Venkman: "What about the Twinkie?"


Winston (later) "that's a big Twinkie!"

 

[Cristobal]

You must learn to roll your own.

 

[marshall25]

I just love all the Union bashing, Everything that goes wrong in this country is because of unions.

 

[Dakota1820]

not all of it but the unions are one of many problems

 

[Cutehumor]

Twinkies are gone? the country will lose some pounds. Great value had some no name twinkies. wonder if they are gone too.

 

[Astro14]

The problem with folks gaining weight wasn't the twinkies...it was the act of stuffing too many twinkies in their mouths...remove the twinkies, they'll find another avenue...another sugar-laden pastry...

 

[hattaresguy]

I can't help but chuckle at the irony of this when a lot of states are starting to legalize pot.

*****

 

[hattaresguy]

Originally Posted By: NMBurb02
I am glad to see that the company is standing up to the unions and that some people are thankful enough to have a job that they are willing to cross the picket lines to continue working.


Its not just the unions, they are responsible for maybe a third of this, or less.

Its the hedge funds that own all of Hostess debt, they want to collect on their $150M, one way or another.

The best way to do that might be to kill Hostess and sell off parts of the carcass to other companies and investors. Either way someone will make the Twinkie, to much money on the table not to.

What you guys are seeing is a hedge fund make bank on a distressed asset, ie in this case the Twinkie guys. This is how its done. Someone is going to get the profitable parts of the company, the dead weight will be shed, and some hedge fund guys will make so much money this year they won't know what to do with it all, like always. Capitalism at its finest. Oh and they are probably trying to complete the deal before Jan 1st, so this will happen fast.

 

[JHZR2]

Tastykake seems to be a goner too...