Twinkies Going Galt
Hostess Brands — the maker of iconic brands such as Wonder Bread and Twinkies — is shutting down and firing 18,500 workers after one of its unions refused to end a strike even after being warned it would kill the company.
The privately-held company had reached a deal with the Teamsters, but a smaller union representing bakery workers refused to agree to concessions, prompting the mass layoffs and closing down of hundreds of plants, bakeries and delivery routes. That prompted harsh words from both the company and from Teamsters officials.
"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."
I suppose Michelle Obama and Michael Bloomberg are celebrating
Sotosoroto:
That darn International Brotherhood of Jazz Dancers, Pastry Chefs and Nuclear Technicians!
November 16, 2012, 9:19 amsabre_springs_mark:
They (used to) make a whole wheat "white" wonder bread too - it wasn't all just junk food.
November 16, 2012, 9:48 amJoshua Vanderberg:
Wonder bread? Junk food.
November 16, 2012, 11:51 amsabre_springs_mark:
Did you read that they have (had) whole wheat wonder bread? It is the same as any other whole wheat bread, but they used a white colored grain so it wouldn't look brown.
November 16, 2012, 12:03 pmsch:
And then there is more: Tyler Durden's write up on zerohedge: http://www.zerohedge.com/news/2012-11-16/hostess-liquidation-curious-cast-characters-twinkie-tumbles
Most interesting......
November 16, 2012, 4:03 pmLarryGross:
never fear. "Twinkies" will be sold to another company for a pretty penny and the "owners" of Hostess will laugh on the way to the bank. And the buyer company... probably not union.
end of story but not end of Twinkies!
November 17, 2012, 3:46 amobloodyhell:
Much as everyone adores Hostess products, I don't believe anyone deserving of the term "pastry chef" was ever in their employ.
"Pastry Short Order Fry Cook", maybe... (:o9
November 17, 2012, 4:06 amLarryGross:
well there's another irony also. Today we are told we eat too much "junk food" but Twinkies have been around for ....generations... we just did not start eating twinkies recently.
November 17, 2012, 4:17 amobloodyhell:
Well, it's not so much the junk food as the fact that we live longer now, and act like that doesn't give all that stuff that didn't have time to kill us before now does have the time to kill us.
Used to be, the junk food didn't kill ya before all the other things did. Now the junk food has time to be a problem. We get to live another 50 years or so, and the insecticides will have time to get to us, then.
It's a never ending battle. I mean, if you live long enough, you have to worry about the sun going Nova...
November 17, 2012, 4:47 ammesaeconoguy:
Terrific tale of leftist cannibalism.
Union kills democrat private equity venture.
November 17, 2012, 9:59 amskhpcola:
So you *do* understand how this free-market thing works! Why do you act obtuse all of the time? Is this your singular moment of clarity in an otherwise endless stream of unconscious idiocy?
November 17, 2012, 10:14 amLarryGross:
there is a difference between free market theory and free market practice. I do know the difference, unlike some who apparently believe the theory should work 100% in practice.
November 17, 2012, 2:50 pmZL:
When has Michael Bloomberg supported unions? I thought he was a mortal enemy of New York City teacher's unions.
November 18, 2012, 5:30 pmCg Chase:
All I can say about that is that we have fewer, horses and bayonets. The loss of 18, 000 jobs is nothing new in America and I blame it more on the company than I do the unions. Unions can only get a foothold in your company when you yourself refuse to address your employees issues. Instead most companies treat the employee like a pariah and use threats to coerce them. As for Twinkies. Who needs them, they have no dietary purpose other than a quick sugar boost. So while you may associate unions with the left and imply that employees are a bunch of greedy entitlelist, the prices continue to go up while salaries decline. Where is your leg to stand on?
November 19, 2012, 8:13 amnehemiah:
Certainly if the US auto industry was worthy of a bailout, we can find a few bucks to save the Hostess flagship. After all they have union jobs to save and greedy rich shareholders/bondholders to squeeze out. Please don't tell me we'll have to suffer eating Twinkies made in China.
November 19, 2012, 8:29 amsabre_springs_mark:
Hostess got an offer for the company last year @ 500 million dollars, This year it is estimated the whole company is worth 150 million dollars, and the company is in bankruptcy meaning that it can not pay off its debt.
Somehow I highly doubt that some bigwigs smoking cigars in the the back room are going to make a massive profit. Yes the lawyers will but you should like that since they are mostly Democrats.
November 20, 2012, 9:10 am