No More Ho Ho's??? No No.... We don't mean Christmas is Canceled.... Hostess may be closing up shop for good!!
Check out this article, compliments of the Huffington Post
Hostess Brands Liquidation: Twinkie-Maker Seeks Court Permission To Liquidate [UPDATE]
AP | By CANDICE CHOI and TOM MURPHY
Posted: 11/16/2012 7:12 am EST Updated: 11/16/2012 1:19 pm EST
Hostess Brands Inc. says it's going out of business after striking workers across the country crippled its ability to make its Twinkies, Ding Dongs, Wonder Bread and other snacks.
The company had warned employees that it would file a motion with U.S. Bankruptcy Court Friday seeking permission to shutter its operations and sell assets if plants didn't resume normal operations by a Thursday evening deadline.
The closing would mean the loss of about 18,500 jobs.
"Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands," CEO Gregory Rayburn said in a letter to employees posted on the company website.
He added that all employees will eventually lose their jobs, "some sooner than others."
"Unfortunately, because we are in bankruptcy, there are severe limits on the assistance the (company) can offer you at this time," Rayburn wrote.
Hostess, based in Irving, Texas, suspended bakery operations at its 33 factories and said its stores will remain open for several days to sell already packaged products. The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.
Thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike last week after rejecting in September a contract offer that slashed wages and benefits. Hostess said Friday the company is unprofitable "under its current cost structure, much of which is determined by union wages and pension costs."
A union representative did not immediately return a call from The Associated Press seeking comment on the company's announcement.
Hostess had said that production at about a dozen of its plants were seriously affected by the strike. Three plants were closed earlier this week.
The company had already reached a contract agreement with its largest union, the International Brotherhood of Teamsters. The Teamsters had urged the bakery union this week to hold a secret ballot on whether to continue striking.
Hostess, founded in 1930, was fighting battles beyond labor costs. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating. Hostess also makes Dolly Madison, Drake's and Nature's Pride snacks.
The Huffington Post notes that Rayburn said in a statement and on CNBC on Friday morning that he plans to try to seek a buyer for Hostess's brands, including Twinkies. "I'm certainly hopeful that we can sell the brands and the brands will live on. They're iconic," he said on CNBC.
The brands may live on but the company is dead, however. Rayburn noted on Today: "It's over. This is it."
Hostess has revenues of about $2 billion per year.
Rayburn placed the immediate blame largely on Hostess' bakers union, telling the Today Show on Friday: "The leadership of that union made the decision that they're willing to sacrifice these jobs because they don't really want to have these kinds of concessions from other companies." In media appearances, he portrayed other Hostess unions as more flexible, saying that some of them accepted management's proposal. But Rayburn also acknowledged to CNBC that "management was poor."
The company had warned employees that it would file a motion with U.S. Bankruptcy Court Friday seeking permission to shutter its operations and sell assets if plants didn't resume normal operations by a Thursday evening deadline.
The closing would mean the loss of about 18,500 jobs.
"Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands," CEO Gregory Rayburn said in a letter to employees posted on the company website.
He added that all employees will eventually lose their jobs, "some sooner than others."
"Unfortunately, because we are in bankruptcy, there are severe limits on the assistance the (company) can offer you at this time," Rayburn wrote.
Hostess, based in Irving, Texas, suspended bakery operations at its 33 factories and said its stores will remain open for several days to sell already packaged products. The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.
Thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike last week after rejecting in September a contract offer that slashed wages and benefits. Hostess said Friday the company is unprofitable "under its current cost structure, much of which is determined by union wages and pension costs."
A union representative did not immediately return a call from The Associated Press seeking comment on the company's announcement.
The company had already reached a contract agreement with its largest union, the International Brotherhood of Teamsters. The Teamsters had urged the bakery union this week to hold a secret ballot on whether to continue striking.
Hostess, founded in 1930, was fighting battles beyond labor costs. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating. Hostess also makes Dolly Madison, Drake's and Nature's Pride snacks.
The Huffington Post notes that Rayburn said in a statement and on CNBC on Friday morning that he plans to try to seek a buyer for Hostess's brands, including Twinkies. "I'm certainly hopeful that we can sell the brands and the brands will live on. They're iconic," he said on CNBC.
The brands may live on but the company is dead, however. Rayburn noted on Today: "It's over. This is it."
Hostess has revenues of about $2 billion per year.
Rayburn placed the immediate blame largely on Hostess' bakers union, telling the Today Show on Friday: "The leadership of that union made the decision that they're willing to sacrifice these jobs because they don't really want to have these kinds of concessions from other companies." In media appearances, he portrayed other Hostess unions as more flexible, saying that some of them accepted management's proposal. But Rayburn also acknowledged to CNBC that "management was poor."
Related News On Huffington Post:
WPTV BREAKING: #Twinkies -maker #Hostess asks court to allow it to close its business and sell its iconic brands http://t.co/NJmoddHw
6 hours ago from Tweet Button
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mkhammer Jobs for non-union bakers. MT @baseballcrank: Hostess brands are still valuable - I'm sure in liquidation someone else can buy Twinkies.
5 hours ago from HootSuite
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verodupont Hostess Brands, maison mère du gateau américain sucré Twinkie, se met en liquidation après une grève: 18.500 employés seront licenciés #AFP
3 hours ago from web
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bitememore RT @TheFoodieBugle: Almost 18 500 jobs are at risk as Hostess Brands, makers of Twinkies and Wonder Bread, goes into liquidation. http://t.co/HVDqEohp | ||
HMCMINN BANKRUPTCY WEEK AHEAD: Hostess to Launch Liquidation - Hostess Brands Inc. could kick off its bankruptcy liquidation... http://t.co/QjNaysQH
1 minute ago from HootSuite
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manjocin Hostess Brands Liquidation: Twinkie-Maker Seeks Court Permission To Liquidate http://t.co/qTo6jLZ6 liquidation_n_2143284.html What!!! | ||
OlatheBizDir Hostess liquidation plans blow up Twitter: The Friday morning news that Hostess Brands Inc. — maker of treats su... http://t.co/mjfFrPra
8 minutes ago from twitterfeed
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EssenceOfEden1 RT @TheFoodieBugle: Almost 18 500 jobs are at risk as Hostess Brands, makers of Twinkies and Wonder Bread, goes into liquidation. http://t.co/HVDqEohp
9 minutes ago from web
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TheFoodieBugle Almost 18 500 jobs are at risk as Hostess Brands, makers of Twinkies and Wonder Bread, goes into liquidation. http://t.co/HVDqEohp
10 minutes ago from web
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russellbooth Goodbye sweet #twinky! Union bickering leads to #hostess liquidation! http://t.co/qubVlK4k | ||
OldTimeFlea Hostess Brands Liquidation: Twinkie-Maker Seeks Court Permission To Liquidate http://t.co/bWzCbISI via @HuffingtonPost | ||
PuckProphet Hostess liquidation sends Twinkies, a Chicago invention, to extinction http://t.co/FsJZqM6q via @HuffPostChicago | ||
JLG1956 RT @CaleRamaker: Hostess Brands, Inc. calling the bluff on its largest union. Hostess will file for liquidation after union refuses to end strike.#SadTwinkie | ||
moeshow84“@edmontonjournal: Is the Twinkie toast? The Ding Dong defunct? http://t.co/sWCbEMrv #EJlive” @justshoutadam oh no! We need to stock up | ||
SocialAvenuee BANKRUPTCY WEEK AHEAD: Hostess to Launch Liquidation: Hostess Brands Inc. could kick off its bankruptcy liquidation... http://t.co/oW5UV299
25 minutes ago from dlvr.it
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beyouonlybetter With the liquidation of Hostess, 18,000 American jobs were lost. They had over 25 brands under their parent company. A travesty. | ||
JMoreChicago Is said that #Twinkies can survive nuclear blast, but liquidation? http://t.co/tS6uXfZZ | ||
arukun14 So I'm hearing from the Internetz that Hostess Brands is in the process of liquidation. No more Twinkies? | ||
Around the Web: Twinkies maker: Liquidation decision expected Friday - CBS News
Hostess Brands threatens liquidation after union strikes - Dallas ...
Hostess Brands will seek liquidation unless enough workers return ...
Twinkies Maker Hostess Vows to Liquidate Company if Strikes ...
Twinkies maker Hostess Brands says liquidation decision expected ...
Hostess to Liquidate if Strikes Impede Normal Operations
Hostess Brands closing for good
Hostess Brands Will Fire 18000, Shut Down After Strike
The Daily Docket: Hostess to Liquidate
Hostess Brands threatens liquidation after union strikes - Dallas ...
Hostess Brands will seek liquidation unless enough workers return ...
Twinkies Maker Hostess Vows to Liquidate Company if Strikes ...
Twinkies maker Hostess Brands says liquidation decision expected ...
Hostess to Liquidate if Strikes Impede Normal Operations
Hostess Brands closing for good
Hostess Brands Will Fire 18000, Shut Down After Strike
The Daily Docket: Hostess to Liquidate
Filed by Reuters |
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11 seconds ago ( 1:32 PM)
When's Obama going to swoop down and rescue the American baking industry? This is another crony vote buying chance for the administration to bailout his Union supporters... Let every American have ownership of failed Twinkie stock!!
58 seconds ago ( 1:31 PM)
Many here blaming the CEO for doing a poor job of managing yet never think of blaming the 6 trillion of new debt and millions of unemployed on the current CEO of this country
58 seconds ago ( 1:31 PM)
Rayburn's workout plan of cutting jobs and benefits was well-tested during the Worldcom debacle that set modern standards for business criminality and corruption but he has been largely unimaginative in his approach to the Hostess BK. It may be time for the legendary shelf life of Twinkies, like those fruitcakes your grandmother used to make, to finally end.
1 minute ago ( 1:31 PM)
So they started chapter 11 bankruptcy in 2004 and it took them till 2009 to get back into business and just 3yrs later it starts all over again.Not very good management, except their pay of course
2 minutes ago ( 1:30 PM)
But what if I commit a violent crime and I need a defense?
2 minutes ago ( 1:30 PM)
How much did CEO Rayburn take home annually over the last few years?
2 minutes ago ( 1:30 PM)
Hey union whiners; shut it all down, and get in the cheese line. You will lose, capital will not.
2 minutes ago ( 1:30 PM)
Hostess is a great case study for where America is headed. This is the second management team who couldn't make it work and so they must assume some responsibility in the companies failure. But the greater issue is the liability of union entitlements. Unions, thinking that companies have endless money let greed and incompetence and politics rule the day instead of doing what was right for their union workers. America faces the same issue. An incompetent President, backed by greedy unions and burdened with huge entitelments he's promised but can't pay for. Just as Hostess was faced with the ultimately choice of providing NOTHING to their workers in forms of jobs or pensions, this President is forcing our nation into a situation where those living on his entitlements now will be forced to receive NOTHING when we're faced with the fact that we have no more money to support those things.