1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Hostess Brands Moves to Wind Down Operations, Sell Assets

Discussion in 'The OT' started by fluffybear, Nov 16, 2012.

  1. Karen

    Karen Godfather

    331
    4
    Oct 4, 2007
    I thought this article was interesting.

    A worker who did identify himself, Dave Hodel, chimed in: "They were purchasing things like windows and toolboxes, spent the last year painting the lunchroom, locker rooms and floors. They should've spent money on machinery to run the plant better, not just aesthetics."

    Updating the machinery, repairing and replacing delivery trucks, expanding the loading dock – there's only one bay – would've suggested true investment in the company's long-term future. Why spend money on new windows?

    "They want it to look pretty so they can sell it," said Marty Zimmerman, head of the bakers union Local 85.

    So while talking "good faith" and "shared sacrifice," execs were sprucing up the decor, as if preparing to stage an open house.​

    Read more here: http://www.sacbee.com/2012/11/20/49...cutives.html#storylink=misearch#storylink=cpy
     
  2. Cholly

    Cholly Old Guys Rule! DBSTalk Club

    4,922
    52
    Mar 22, 2004
    Indian...
    I have yet to see a comparative analysis of the agreements between the two unions and Hostess since the first bankruptcy. Nowhere have I seen anything about what concessions Teamster members have made. Perhaps they're in better financial position than the bakers.
     
  3. Reaper

    Reaper Godfather

    633
    23
    Jul 30, 2008
    Unions don't strive to break contracts, and they strive to hold employers to their promises. Besides, everyone wants a bigger slice of the pie - that's the American way after all.
     
  4. Hoosier205

    Hoosier205 Active Member

    6,659
    14
    Sep 3, 2007
    Unions used to function that way...a few decades ago.
     
  5. Matt9876

    Matt9876 Hall Of Fame

    1,006
    0
    Oct 11, 2007
    I had good health insurance until 2001 when the cost went totally out of control, I even put the last few payment on my credit card to extend the coverage to my family for the rest of that year.

    Fast forward to today, Because of several economic downturns my resources are very limited the very last thing I need right now is a new large tax/penalty/Insurance payment.

    I have a doctor now that takes care of my regular medical needs I pay him my hard earned cash for his services, What is being purposed would most certainly take away my trusted doctor.

    I have spoken with a corporate book keeper who said "No way will anybody be able to afford this thing."


    I expect many a company will have problems meeting the expected cost in this slow economy.
     
  6. djlong

    djlong Hall Of Fame

    4,343
    57
    Jul 8, 2002
    New Hampshire
    That article refutes stories that claim he said he would be closing stores.

    It does NOT refute that he said it would cost $5M-$8M to cover his employees.

    It also does NOT refute the commonly repeated estimate that it will cost 10-14 *cents* per pie.

    If I were Papa John, I'd be CROWING about it in my ads - I'd say "a dime is a small price to pay so that the people who make and bring you your meal can have health insurance"

    ...of course, this wouldn't be an issue if we weren't paying so much for so little in this country, but that's another debate.
     
  7. Carl Spock

    Carl Spock Superfly

    4,567
    0
    Sep 3, 2004
    ^ When I read posts like this, I think of a T-shirt I recently purchased.

    It says, "With enough thrust, pigs fly just fine."
     
  8. runner861

    runner861 Icon

    859
    0
    Mar 20, 2010
  9. Rich

    Rich DBSTalk Club DBSTalk Club

    27,140
    541
    Feb 22, 2007
    Piscataway, NJ
    Good post! Doing that country wide would/might put a stop to these guys/conglomerates who buy companies just to close them.

    Rich
     
  10. SayWhat?

    SayWhat? Know Nothing

    6,262
    133
    Jun 6, 2009
    Some of the business stories today are saying they have over 100 prospective buyers for the brands.
     
  11. Nick

    Nick Retired, part-time PITA DBSTalk Club

    21,880
    195
    Apr 23, 2002
    The...
    The Hostess Bakery plants may have shut down due to the workers' strike, but you may not have heard how it was split up.

    The State Department hired all the Twinkies, the Secret Service enlisted all the HoHos, the generals are sleeping with the Cupcakes and the voters sent all the Ding Dongs to Congress.
     
  12. jimmie57

    jimmie57 Hall Of Fame

    7,153
    384
    Jun 26, 2010
    Texas City, TX

    LOL
    That is a good one.
     
  13. Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

    15,353
    579
    Dec 2, 2010
    Winters,...
    Without reference to this dispute, in general, companies that are worth more liquidated than as going concerns ought to be shut down. When they're shut down, no executive pay happens.
     
  14. Dec 1, 2012 #254 of 313
    AntAltMike

    AntAltMike Hall Of Fame

    3,787
    108
    Nov 20, 2004
    College...
    It seems to me that the most valued "asset" of the Hostess brands was the shelf space they had in each store, but now that is gone.
     
  15. Dec 1, 2012 #255 of 313
    Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

    15,353
    579
    Dec 2, 2010
    Winters,...
    Pretty sure all it takes is $$ to regain same....
     
  16. Dec 1, 2012 #256 of 313
    Tom Robertson

    Tom Robertson Lifetime Achiever DBSTalk Club

    21,331
    247
    Nov 15, 2005
    Won't even take $$ for shelf space. After all this demand, the store owners would put pallets of the stuff out for awhile.

    Peace,
    Tom
     
  17. Dec 4, 2012 #257 of 313
    hdtvfan0001

    hdtvfan0001 Well-Known Member

    32,456
    258
    Jul 28, 2004
    Funny you should mention that.

    A local Walmart just got 3 pallets full of Twinkies and promptly put them out on shelves...2 sold out in one day.
     
  18. Dec 4, 2012 #258 of 313
    runner861

    runner861 Icon

    859
    0
    Mar 20, 2010
    Why didn't Congress bail out Hostess like they bailed out the car companies?
     
  19. Dec 4, 2012 #259 of 313
    Cholly

    Cholly Old Guys Rule! DBSTalk Club

    4,922
    52
    Mar 22, 2004
    Indian...
    Seriously? :sure:
    Although Hostess had lots of employees and major brands, the company can sell off the brands and make considerable money as they dissolve. To be sure, 18,500 people are out of work there, but most have marketable skills.
    By contrast the automobile industry and its suppliers accounted for well over a million jobs.
     
  20. Dec 4, 2012 #260 of 313
    runner861

    runner861 Icon

    859
    0
    Mar 20, 2010
    I understand. I was just making a joke.
     

Share This Page