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Hostess Brands Moves to Wind Down Operations, Sell Assets

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

  1. Nov 18, 2012 #81 of 313
    TXD16

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    So far as I am aware, it was the union-called walkout and the resultant and intentional shut-down of production, not the executive salaries, that finally did in the company.
     
  2. Nov 18, 2012 #82 of 313
    Davenlr

    Davenlr Geek til I die

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    Had the money been put into the company rather than executive salaries, there likely would not have been a union called walkout in the first place.
    If my boss's salary went up 200%, at the same time the boss said my salary was going to drop, and by benefits were being cut in half, Id be ticked off too.
     
  3. Nov 18, 2012 #83 of 313
    TXD16

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    I'm not sure what you mean by "put into the company," as executive salaries are very much a part of any company, but the the fact still remains that it's the walk-out that eventually killed the company and more than 18,000 jobs.
     
  4. Nov 19, 2012 #84 of 313
    RasputinAXP

    RasputinAXP Kwisatz Haderach of Cordcuttery

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    The walk out that wouldn't have had to happen if management had been better at managing and not at siphoning money into their pockets: http://thinkprogress.org/economy/20...ont-shoulder-the-blame-for-hostesss-downfall/

    During their bankruptcy filings in January of this year, they increased the CEO's pay 300%, and 9 or more other execs got massive raises.

    I don't care who you are or how you feel about unions, but that is some grade-A level stupid right there. Unless you're a modern-day raubritter who does this sort of thing for fun, which...well, many corporate raiders are.

    edit: Media Matters with more details: http://mediamatters.org/research/2012/11/16/fox-ignores-hostess-array-of-troubles-to-scapeg/191440
     
  5. Nov 19, 2012 #85 of 313
    TXD16

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    In the U.S., no walkout "has to happen." It's a choice, not a requirement. Unfortunately, this one happened to unnecessarily kill more than 18,000 decent-paying U.S jobs.
     
  6. Nov 19, 2012 #86 of 313
    Davenlr

    Davenlr Geek til I die

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    Im talking about the money that was taken from the employees in concessions in the early 2000's, which the corporate raiders said was to be used to modernize the equipment to keep them competitive, and which was never put back into the company, but into the raiders pockets.

    As long as scum like that is allowed to legally pillage businesses, then jobs will continue to be lost. Union or no union, Hostess was going to fail.
     
  7. Nov 19, 2012 #87 of 313
    TXD16

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    Right, the business should have been shut down many years ago, so all the workers could have begun their trek along the unemployment path much earlier. :rolleyes:
     
  8. Nov 19, 2012 #88 of 313
    Davenlr

    Davenlr Geek til I die

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    You can try to throw off the discussion with sarcasm all you want, but the facts remain, and are well documented.
     
  9. Nov 19, 2012 #89 of 313
    phrelin

    phrelin Hall Of Fame DBSTalk Club

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    You can argue about the pillaging of American companies by labor and capital all you want. But we need to recognize that in the 21st Century the issues have already been reframed.

    A Christian Science Monitor article notes a number of issues, but most importantly the "Bimbo" factor.
    Where was the outrage when a Mexican company bought the Sara Lee, Entenmann’s and Thomas English Muffins brands? Just because Twinkies seem more "American" than a Sara Lee pound cake doesn't change the economics. Let's be real here.
    There are so many issues intertwined here.

    I wouldn't be surprised to see some of the Hostess brands on a truck from Mexico to warehouses in the U.S. That takes care of the sugar tariff which is dumb policy benefiting a relatively few anyway and is tied to our Cuba policy.

    Labor isn't the problem in the bakeries in the U.S. still making Sara Lee, Entenmann's and Thomas brands so some Hostess brands could continue to be made in those bakeries. See the Bimbo Bakeries USA web page and watch all the brands you know and love fade in and out at the top, brands that you think are as American as ... apple pie ... you might be surprised.

    The distribution chain for the Bimbo brands is already in place. Hostess distribution warehouses and drivers won't be needed.

    Most Americans are not even aware that (see Wikipedia) Grupo Bimbo "is the world's largest baking company, with brands in the Americas, Asia, and Europe."

    If you've never been to places like Santiago de Querétaro in the State of Querétaro in the United States of Mexico you might not know that this world's largest baking company is also a major backer of the Piedra Larga windfarm. They're a 21st Century international company doing 21st Century things.

    They may or may not buy Hostess brands, but we in the United States of America need to start paying a bit more attention to the reality of our lives and quit pretending that 20th Century ideas and issues should define our conversation about our future. When workers in another nation manufacture your iPhone it's one thing. When a few international capitalists in another nation own your commercial bread production, it's another.

    If you spend some time in places like Querétaro, you may get a feel for what a late 21st Century U.S. of A. economy and social structure could look like. No, this isn't about ethnic issues, it isn't xenophobia. This is about how tough it is to sustain a large middle class anywhere in the world. Not having any Twinkies is going to be the least of my grandchildren's problems.
     
  10. Nov 19, 2012 #90 of 313
    SayWhat?

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    That's because the box you just bought was made when you were much younger. :p

    Ummm, No, they're not. That is money taken out of the company by stuffed shirts.

    Wait, so Twinkies could be made by Bimbos?
     
  11. Nov 19, 2012 #91 of 313
    Stewart Vernon

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    The problem with Coke was they changed the recipe to one that people didn't like... not that they changed the recipe. It didn't help that they made a public splash about it either... but IF people had liked the new taste, it would all be a distant memory.

    I'm not talking about making "healthy" twinkies... I'm just talking about a return to their roots and making them out of actual food!

    The consumer-base has apparently been doing what I did long ago... trade the fake-food Twinkies for fresher more tasty snacks whether they be healthful or not.

    I'm a fan of junk food... as long as it is food! Not all junk food is as "unhealthy" as some would have you think, especially in moderation... but some "food" just isn't food in the sense that your body gets something meaningful out of it.

    I've seen recipes online on how to make your own fresh Twinkies... and I have to think those taste loads better than what the company has been spitting out in recent years.

    That's all I'm saying... a smart investor will use the name to make a fresher, tastier product that harkens back to the original.

    Using your New Coke example... the current Twinkie IS the "new Coke"... I'm arguing a return to "classic Twinkie" as a way to reinvigorate the brand.

    Odd to find myself agreeing with the dark sith lord... but that's basically my thinking. IF the product was better, I think they would sell more.

    I remember back in the day, you wanted a Hostess Twinkie... not some knock-off "creme-filled cake" from some other company... you could taste the difference... but at some point, the official Twinkie became its own knock-off.
     
  12. Nov 19, 2012 #92 of 313
    Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

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    And the reframing will continue, unless we turn to isolationism.
    Yes. But I don't see any need for outrage for any of this.

    It's also a perfect distribution chain for Breaking Bad. No more need for any German multi-national companies! :lol:
     
  13. Nov 19, 2012 #93 of 313
    kenglish

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    At the prices they are asking for on e-bay, you're probably talking a Capital Offense, there.:lol:
     
  14. Nov 19, 2012 #94 of 313
    Rich

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    No. Something happened up here and they closed all the sales for KK donuts down and they just disappeared. Happened a few years ago. I don't remember what the cause was. I saw some a year or so ago and they disappeared again. I do know that folks here seem to prefer DD coffee to Starbucks. Maybe that was the reason KK disappeared, no stores such as DD has. Those delicious glazed KK donuts...just gone.

    Rich
     
  15. Nov 19, 2012 #95 of 313
    Rich

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    Jam a lot white powder in a case of Twinkies...

    Rich
     
  16. Nov 19, 2012 #96 of 313
    Rich

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    I didn't realize that people who basically shut down businesses for profit were in charge of the company. Yeah, when those guys get in nothing can save a company.

    Rich
     
  17. Nov 19, 2012 #97 of 313
    Lord Vader

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    There is hope for you. As more and more people find themselves agreeing with me, the world becomes a better, more sensible place. !Devil_lol
     
  18. Nov 19, 2012 #98 of 313
    yosoyellobo

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    Or else.:)
     
  19. Nov 19, 2012 #99 of 313
    Rich

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    He certainly doesn't lack self esteem.

    Rich
     
  20. runner861

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