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Thread: Hostess, maker of Twinkies, Ding Dongs and Wonder Bread set to close. 18,500 Jobs Go.

  1. #16
    Forum Veteran Daquan13's Avatar
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    Twinkies likely to survive sale of Hostess


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    By TOM KRISHER, AP
    14 hours ago


    FILE - This Tuesday, Jan. 10, 2012, file photo, shows, Hostess Twinkies in a...


    DETROIT — Twinkie lovers, relax.
    The tasty cream-filled golden spongecakes are likely to survive, even though their maker will be sold in bankruptcy court.
    Hostess Brands Inc., baker of Wonder Bread as well as Twinkies, Ding Dongs and Ho Ho's, will be in a New York bankruptcy courtroom Monday to start the process of selling itself.

    The company, weighed down by debt, management turmoil, rising labor costs and the changing tastes of America, decided on Friday that it no longer could make it through a conventional Chapter 11 bankruptcy restructuring. Instead, it's asking the court for permission to sell assets and go out of business.

    But with high brand recognition and $2.5 billion in revenue per year, other companies are interested in bidding for at least pieces of Hostess. Twinkies alone have brought in $68 million in revenue so far this year, which would look good to another snack-maker.
    "There's a huge amount of goodwill with the commercial brand name," said John Pottow, a University of Michigan Law School professor who specializes in bankruptcy. "It's quite conceivable that they can sell the name and recipe for Twinkies to a company that wants to make them."

    Hostess has said it's received inquiries about buying parts of the company. But spokesman Lance Ignon would not comment on analysts' reports that Thomasville, Ga.-based Flowers Foods Inc. and private equity food investment firm Metropoulos & Co. are likely suitors. Metropoulos owns Pabst Brewing Co., while Flowers Foods makes Nature's Own bread, Tastykake treats and other baked goods. Messages were left for spokesmen for both companies on Sunday.

    "We think there's a lot of value in the brands, and we'll certainly be trying to maximize value, both of the brands and the physical assets," Ignon said Sunday. He said it's possible some of Hostess' bakeries will never return to operation because the industry has too much bakery capacity.

    Little will be decided at Monday afternoon's hearing before Bankruptcy Judge Robert Drain, Pottow said. The judge eventually will appoint a company that specializes in liquidation to sell the assets, and the sale probably will take six months to a year to complete, Pottow said.

    Irving, Texas-based Hostess filed for Chapter 11 bankruptcy protection in January for the second time in less than a decade. Its predecessor company, Interstate Bakeries, sought bankruptcy protection in 2004 and changed its name to Hostess after emerging in 2009.

    The company said it was saddled with costs related to its unionized workforce. The company had been contributing $100 million a year in pension costs for workers; the new contract offer would've slashed that to $25 million a year, in addition to wage cuts and a 17 percent reduction in health benefits.

    Management missteps were another problem. Hostess came under fire this spring after it was revealed that nearly a dozen executives received pay hikes of up to 80 percent last year even as the company was struggling.
    Then last week thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike after rejecting the company's latest contract offer. The bakers union represents about 30 percent of the company's workforce.

    By that time, the company had reached a contract agreement with its largest union, the International Brotherhood of Teamsters, which this week urged the bakery union to hold a secret ballot on whether to continue striking. Although many bakery workers decided to cross picket lines this week, Hostess said it wasn't enough to keep operations at normal levels.

    The company filed a motion to liquidate Friday. The shuttering means the loss of about 18,500 jobs. Hostess said employees at its 33 factories were sent home and operations suspended. Its roughly 500 bakery outlet stores will stay open for several days to sell remaining products.

    News of the decision caused a run on Hostess snacks at many stores around the country, and the snacks started appearing on the Internet at inflated prices.

  2. #17
    Forum Veteran Daquan13's Avatar
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  3. #18
    Forum Veteran Daquan13's Avatar
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    TWINKIES ARE HERE TO STAY!
    Hostess & Bakers Union Agree To Mediation To Prevent Shut Down
    A bankruptcy judge Monday asked whether he should preside over mediation between Hostess Brands Inc. and its striking union to avoid pulling the plug on the baker of Ho Hos, Twinkies and Wonder Bread.
    At a hearing Monday on Hostess’s request to begin the process of shutting down its business, Judge Robert Drain of the U.S. Bankruptcy Court in White Plains, N.Y., asked attorneys representing Hostess and the Bakery, Confectionery, Tobacco Workers and Grain Millers International union whether mediation could help the two resolve their issues and avoid the loss of more than 18,000 jobs.
    “To me not to have gone through that step leaves a huge question mark over this case, which I think–I may be wrong–but I think will only be answered in litigation. And that’s no one’s desired outcome,” the judge said.
    He acknowledged the economic struggle that Hostess is suffering due to the strike, but continued to offer to preside over the case as a mediator.
    I’m sure all you snack lovers our happy to hear this news?

  4. #19
    Forum Veteran Daquan13's Avatar
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    Default Final Curtain for Hostess. Closing for Good!

    Hostess Brands is Closed.

    We are sorry to announce that Hostess Brands, Inc. has been forced by a Bakers Union strike to shut down all operations and sell all company assets. For more information, go to hostessbrands.info. Thank you for all of your loyalty and support over the years.
    HOSTESS BRANDS OBTAINS COURT AUTHORITY TO WIND DOWN ALL OPERATIONS, LIQUIDATE ASSETS
    Irving, TX – November 21, 2012 – Hostess Brands Inc. announced that the U.S. Bankruptcy Court for the Southern District of New York today approved its emergency interim motion for the orderly wind down of its business and sale of its assets. Judge Robert Drain approved the motion after the Company and the Bakery, Confectionary, Tobacco and Grain Millers Union (BCTGM) were unable to reach an agreement during an 11th-hour mediation yesterday. Hostess Brands is winding down the Company after a nationwide strike initiated by the BCTGM that commenced on November 9th crippled its operations at a time when the Company lacked the financial resources to survive a significant labor action.

    Among other provisions, the Court order allows Hostess Brands to return excess ingredients and packaging; provides liquidity through an amended debtor-in-possession financing agreement and consensual use of cash collateral; and authorizes the Company to implement a non-executive employee retention plan to ensure the Company has the necessary personnel to implement the wind down. Hostess Brands said it intends to retain approximately 3,200 employees to assist with the initial phase of the wind down.

    Employee headcount is expected to decrease by 94% within the first 16 weeks of the wind down. The entire process is expected to be completed in one year. The wind down was necessitated by an inflated cost structure that put the Company at a profound competitive disadvantage. The biggest component of the Company’s costs was its collective bargaining agreements that covered 15,000 of 18,500 employees. Hostess Brands worked tirelessly to complete a reorganization of its business as a going concern, including spending the better part of 18 months negotiating with its key constituents to obtain a consensual agreement to lower costs to a sustainable level.

    The Company had obtained the support of its largest union, the International Brotherhood of Teamsters, and its lenders. However, the BCTGM leadership chose not to negotiate a new labor contract and instead, when presented with a final offer, launched a campaign to cripple the Company’s operations and force it to liquidate. The wind down means the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes, 570 bakery outlet stores and the loss of 18,500 jobs. Prospective bidders for the Company’s assets should contact the following representatives. Brands: Perella Weinberg at hostess@pwpartners.com Assets: FTI Consulting at hostess@fticonsulting.com For employees whose jobs will be immediately eliminated, additional information can be found at www.hostessbrands.info. The website also contains a copy of the Company’s wind down motion and information for customers and vendors.

    About Hostess Brands Founded in 1930 and based in Irving, Texas, Hostess Brands’ products have included iconic brands such as Hostess®, Wonder®, Nature's Pride®, Dolly Madison®, Drake's®, Butternut®, Home Pride® and Merita®. Hostess Brands has approximately 18,500 employees and operates 33 bakeries, 553 distribution centers, approximately 5,500 delivery routes and 527 bakery outlet stores throughout the United States.
    ###
    __________________________________________________ _______________________________
    HOSTESS BRANDS STATEMENT ON MEDIATION WITH BAKERS UNION
    Irving, TX – November 20, 2012 - Hostess Brands Inc. announced today that a mediation today with the Bakery, Confectionary, Tobacco and Grain Millers Union was unsuccessful. The Company will have no further comment until a hearing scheduled for tomorrow at 11 a.m., EST, before the U.S. Bankruptcy Court for the Southern District of New York.
    __________________________________________________ _______________________________
    HOSTESS BRANDS TO ENTER MEDIATION WITH BAKERS UNION
    Irving, TX – November 19, 2012 – Hostess Brands Inc. announced today that it will follow a request from the U.S. Bankruptcy Court for the Southern District of New York to enter a confidential mediation on Tuesday with the Bakery, Confectionary, Tobacco and Grain Millers Union (BCTGM). Today’s hearing to consider Hostess Brands’ motion to wind down the Company and sell all of its assets has been adjourned until 11 a.m., EST, on Wednesday. Production remains shut down. About Hostess Brands Founded in 1930 and based in Irving, Texas, Hostess Brands’ products have included iconic brands such as Hostess®, Wonder®, Nature's Pride®, Dolly Madison®, Drake's®, Butternut®, Home Pride® and Merita®. Hostess Brands has approximately 18,500 employees and operates 33 bakeries, 553 distribution centers, approximately 5,500 delivery routes and 527 bakery outlet stores throughout the United States.
    ###
    __________________________________________________ _______________________________
    HOSTESS BRANDS TO WIND DOWN COMPANY AFTER BCTGM UNION STRIKE CRIPPLES OPERATIONS
    Irving, TX – November 16, 2012 – Hostess Brands Inc. today announced that it is winding down operations and has filed a motion with the U.S. Bankruptcy Court seeking permission to close its business and sell its assets, including its iconic brands and facilities. Bakery operations have been suspended at all plants. Delivery of products will continue and Hostess Brands retail stores will remain open for several days in order to sell already-baked products. The Board of Directors authorized the wind down of Hostess Brands to preserve and maximize the value of the estate after one of the Company’s largest unions, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), initiated a nationwide strike that crippled the Company’s ability to produce and deliver products at multiple facilities.

    On Nov. 12, Hostess Brands permanently closed three plants as a result of the work stoppage. On Nov. 14, the Company announced it would be forced to liquidate if sufficient employees did not return to work to restore normal operations by 5 p.m., EST p.m., Nov. 15. The Company determined on the night of Nov. 15 that an insufficient number of employees had returned to work to enable the restoration of normal operations. The BCTGM in September rejected a last, best and final offer from Hostess Brands designed to lower costs so that the Company could attract new financing and emerge from Chapter 11.

    Hostess Brands then received Court authority on Oct. 3 to unilaterally impose changes to the BCTGM’s collective bargaining agreements. Hostess Brands is unprofitable under its current cost structure, much of which is determined by union wages and pension costs. The offer to the BCTGM included wage, benefit and work rule concessions but also gave Hostess Brands’ 12 unions a 25 percent ownership stake in the company, representation on its Board of Directors and $100 million in reorganized Hostess Brands’ debt. “We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” said Gregory F. Rayburn, chief executive officer. “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.”

    In addition to dozens of baking and distribution facilities around the country, Hostess Brands will sell its popular brands, including Hostess®, Drakes® and Dolly Madison®, which make iconic cake products such as Twinkies®, CupCakes, Ding Dongs®, Ho Ho’s®, Sno Balls® and Donettes®. Bread brands to be sold include Wonder®, Nature’s Pride ®, Merita®, Home Pride®, Butternut®, and Beefsteak®, among others. The wind down means the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores throughout the United States.

    The Company said its debtor-in-possession lenders have agreed to allow the Company to continue to have access to the $75 million financing facility put in place at the start of the bankruptcy cases to fund the sale and wind down process, subject to U.S. Bankruptcy Court approval. The Company’s motion asks the Court for authority to continue to pay employees whose services are required during the wind-down period. For employees whose jobs will be eliminated, additional information can be found at hostessbrands.info . The website also contains information for customers and vendors. Most employees who lose their jobs should be eligible for government-provided unemployment benefits.
    ###

  5. #20

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    Twinkies Officially Saved by Billionaire



    By Samer Kalaf | March 12, 2013 - 01:30PM

    The possibility of a world without Twinkies has dissolved. People panicked when the pastry giant Hostess declared bankruptcy, but today, Leon Black-owned private equity firm Apollo Global won ownership of the company with a $410 million bid, the only offer placed. Rejoice and celebrate by eating a Twinkie, then feeling a little nauseous.
    And for those of you who frantically purchased the “remaining” Twinkies on eBay, sucks to to be you!
    (Photo: Divine Harvester/Flickr)

  6. #21

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    Leon left SiriusXM and clearly got bored.

  7. #22
    Chief Antagonist Ninjahedge's Avatar
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    Ugh.

    Heritage or not, Hostess had to have some of the worst bread and treats I have ever had.

  8. #23

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    Even Ho Hos??

  9. #24

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    They should market five pound Twinkies just to piss off Bloomberg.

  10. #25

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    Evan Metropoulos, the co-owner of Pabst Brewing Co. was interviewed on The Howard Stern Show this morning and, as well as coming across as a guy who managed to stay cool despite having a billionaire Dad, discussed his partnership with Leon Black et al in the buy-out of Hostess.

    In other news, Eric the Midget announced Zingers are his favourite.

  11. #26

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    Twinkies make early return at Wal-Mart stores


    11:04 a.m. EDT July 12, 2013

    (Photo: Mark Lennihan AP)

    NEW YORK (AP) — Twinkies are making an early comeback at Wal-Mart stores, and they won't be frozen beforehand.
    The world's largest retailer says it is selling the snack cakes at about 1,600 stores starting Friday and that about 3,000 of its 4,000 U.S. stores should have them by Sunday morning, a day before Hostess had said the spongy yellow cakes would start hitting shelves nationwide.

    By late next week, stores will also have Hostess Mini Muffins and fried Fruit Pies, said Wal-Mart spokeswoman Veronica Marshall. Coffee Cakes, Ho Hos, Orange CupCakes, Suzy Qs and Zingers will be available by August.
    Sno-Balls will arrive in the fall.

    "We've been working with them now for several months to have them available exclusive early," Marshall said.
    The new owners of Hostess have said the company will be freezing Twinkies for about 10% of its retailers upon request, which lets stores stamp their own expiration dates on the cakes. Marshall said Wal-Mart isn't one of the retailers that will get frozen Twinkies.
    Notably, Hostess has also said that Twinkies now have a shelf life of 45 days. That's nearly three weeks longer than the 26 days the previous company had stated for the cakes. Hostess says the changes were made under the previous owners and longer-lasting cakes hit shelves right before the company went out of business.

    Hostess went bankrupt late last year after years of management turmoil and a standoff with its second-biggest union. The company sold off its various brands, with Twinkies and other Hostess cakes going to private equity firms Metroupoulos & Co. and Apollo Global Management, which are known for fixing up ailing brands them selling them off for a profit.
    Marshall declined to say how Hostess cake sales were performing at Wal-Mart stores before the bankruptcy. The retailer also sells Little Debbie cakes, which are made by McKee Foods Corp, and Tastykake, which is made by Flowers Foods. Wal-Mart also sells store brand versions of the cakes.
    http://www.usatoday.com/story/money/...-mart/2511927/
    Last edited by scumonkey; July 12th, 2013 at 08:24 PM. Reason: added link

  12. #27
    Disgruntled Optimist lofter1's Avatar
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    WalMart + Twinkies.

    A match made in Hell

    The Twinkie: Ingredients Revealed

    Five ingredients come from rocks.

    This got my attention. However, it only got worse when I discovered that the ingredients come from phosphate mines in Idaho, gypsum mines in Oklahoma, and oil fields in China. Okay, so now I was wondering if I was watching a real news story—come to find out, I was.

    The Twinkie, which was created during the Depression, contains thirty-nine ingredients. One of those ingredients is a preservative, sorbic acid. Sorbic acid is an ingredient I see on many packages, and I have never thought twice about it. But author Steve Ettlinger did. He found that sorbic acid is actually derived from natural gas.

    If that isn’t shocking enough, he goes on to talk about other ingredients like cellulose gum, Polysorbate 60, and calcium sulfate. Apparently, these ingredients are also used in sheet rock, shampoo, and rocket fuel. No wonder Twinkies make kids run around like crazy and have even been used as a defense for murder!

    Mr Ettlinger also found that the vitamins, artificial colors, and flavorings in Twinkies come from petroleum.

    I started to wonder how this tasty treat made from gas and rocks can be so light and airy. In comes Mr. Ettlinger again. Apparently, it’s limestone that makes Twinkies light. And that tasty cream center—it’s got to be milk, right? No. It’s made of shortening; there is absolutely no cream in the cream.

    I have to say I was curious to know what Hostess, the makers of the Twinkie, thought about Mr. Ettlinger’s claims. Well, here’s the quote that ran in my newscast:

    Deconstructing the Twinkie is like trying to deconstruct the universe. We think the millions of people … would agree that Twinkies just taste great.—David Leavitt, Vice President Snack Marketing at Hostess.

    The news story was inspired by Steve Ettlinger’s new book, Twinkie Deconstructed. Ettlinger uses the Twinkie to demonstrate where our processed food ingredients come from. Since the Twinkie is the product leader—yes, it’s a product and apparently, barely a food—it served as the perfect tool to show consumers what goes into our food.

    Another newsworthy note—since so many of the ingredients come from overseas, there are hardly any regulations placed on them. We are all familiar with the recent paint issues from China. As for the Twinkie, many of the vitamins listed on its label come from China and are not regulated. There were a few other ingredients Ettlinger sourced, but he was unable to communicate with the agricultural or chemical manufacturer of those ingredients. They simply do not need to make themselves available.

    To read more about the Twinkie and Steve Ettlinger, you can buy his book or see his Web site.

    One last word for all of us who fried a Twinkie at some point in our lives … I guess we didn’t make it any less healthy.
    Last edited by lofter1; July 12th, 2013 at 08:37 PM.

  13. #28
    Chief Antagonist Ninjahedge's Avatar
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    I think Twinkies are crap.

    I do not need someone that is paranoid about synthetics (the same place most pure vitamin and derivatives come from) to make me not want one.

    The Petroleum boogey man has enough work to do. Twinkies are crap, as well as 90% of what Hostess produced. Nostalgia may bring them back, but it sure as hell ain't taste.

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