No more twinkies

[f5moab]

http://www.nbcchicago.com/news/nati...s-Going-Out-of-Business-179643161.html:shame:

 

[ArtHummer]

Hmm... I got "Sorry, the page you are looking for does not exist."

​

 

[alrock]

I guess Hostess isn't too big to fail (thankfully)

 

[abearden]

Tallahassee is going to be pissed.

 

[f5moab]

Damn chicago paper link. Obama probably had them shut it down. But here's fox news
http://www.foxnews.com/us/2012/11/1...te-lay-off-18500-after-crippling-union-fight/

 

[Kurt]

The writing was on the wall for some time. I think the folks who were brought in to clean up the bankruptcy was looking for an excuse to liquidate, get paid off as the first creditor, and sell the IP to the highest bidder. The big unions weren't stupid, they made a deal, but the bakers didn't.

If your business model is unchanged for decades and all you are rolling on is nostalgia, you are doomed to think that business model will still be valid today. Kids today aren't really aware of the hostess brand of products since theres so much competition out there. The last time I saw a serious push on marketing from hostess was in the 1980's, you had those goofy comic book page ads with Spiderman and the like, and tv commercials with animated characters. Then that dried up.

The thing about household brands is you have to keep it active, keep it alive in public memory or it'll fade out.

They were late to the health food transition, all they had was sweets and breads.. carbs and sugars and they only decided to get into the natural goods side of things 2 years ago. Too little too late. If they pursued more automation, and diversified into other products they wouldn't be in this mess today.

Hostess is a dinosaur.

The Wonderbread brand and Hostess IP will get picked up by another company and they'll start selling it. Heck I've been seeing more Mexican bimbo products in stores over the past few years than Hostess.

I mean... wonderbread? Really? Americans have access to cheap, fresh bakeds loafs of bread in almost every store, sometimes cheaper than wonderbread. I can walk down to a corner store, fresh and easy and they have a machine dumping out fresh baked french loafs for 99 cents every hour on the hour.. that's a money maker. And the company selling that is selling a oven, packaging system, and the dough... now thats a business model...

 

[twinmill28]

To start---I feel for the 18,000 people losing their jobs going into the holidays, many of them probably close to gaining a retirement or heavily vested after many years and losing that.

To finish--not sure if it can be summed up as easily as I've read into this, Hostess shoving that strike right up the union's arse and walking away. For that, I applaud them.

I consider myself fortunate to have a job, I try to keep my mouth shut and keep it


BTW F5--I'll forgive you THIS time for posting anything from Fox news, I understand you needed an emergency backup for the original link you posted :giggle:

 

[j3jackson]

I heard the Unions are to blame, plus I ate so many Twinkies I caint see my Ding Dong.

 

[deserth3]

Management is blaming union workers and union. Union and union workers are blaming manegment and Wall street. I'm a little suprised the unions aren't screeming for a bailout.

 

[Green 1]

If this had happened before the election it would not have changed anything but it would have been a rfeminder to allof the mindless union guy's that in the end all Obama can do is promise them unemployment. Unfortunitely most of the people loosing their jobs are nonunion employees.

 

[ArtHummer]

It seems to me like another Bail Out Package is on the way... "Obamanator on the rescue!!! Save the American Twinki Industry"

 

[Kurt]

Eh, the Bakers union was ****ed, they figured they go out with a bang.

-The Union was suing over violations from the last bankruptcy agreement [pension funds not being contributed for over a year]
-No more 8 hour rule [no more paid overtime]
-8% immediate pay cut
-Retirement benefits being cut
-8-12 plants being shut down [most would be losing their jobs before the walkout]

Meanwhile the managers and Ripplewood Holdings give themselves raises, pile on the debt before sinking the ship and selling off everything piece meal.

But no its all that Obamas fault and his chicago style politics and his union cronies....

Or was it Mrs. Obama and her crusade for healthy foods, government interference in our daily lives...

Meanwhile the vulture capitalist sneaks out the back door...

So long wonderbread, I won't miss you.

 

[deserth3]

-No more 8 hour rule [no more paid overtime]
-8% immediate pay cut
-Retirement benefits being cut
-8-12 plants being shut down [most would be losing their jobs before the walkout]

Three of those things the company I work for has done over the last several years. I didn't see a pay cut, but I saw a pay freeze. Not much sympathy for spoiled union people from me.

 

[Kurt]

Three of those things the company I work for has done over the last several years. I didn't see a pay cut, but I saw a pay freeze. Not much sympathy for spoiled union people from me.

They did a round of concessions in 2009 and the company left bankruptcy with concessions. What happened as a result was no marketing, or further investment in the company, setting it self up for sale.

And that they did, they sold themselves to Ripplewood Investments and then proceeded to borrow 100's of millions of dollars and paid themselves a ton of money. Not to make a company for the long haul, but to push Hostess along to another private equity buyout...

No new plants, new modernization, no new marketing of products, no new product development, the company is a zombie at this point and the workers knew the clock was ticking.

The company has been on the decline for decades but to put the whole thing on the Unions head is disingenuous.

That being said, If I was involved with this company in any form as an employee, I would have left that sinking ship a long time before this.

 

[LagunaH1]

I'm surprised they lasted this long given how irrelevant their products were.

 

[kflips]

I still have some in my glove compartment -- They are part of my survival gear.

 

[abearden]

I'm surprised they lasted this long given how irrelevant their products were.

Irrelevant? How? Delicious desserts, lots of baked products. Shrinking market, yes. Irrelevant? I don't see it.

 

[LagunaH1]

Irrelevant? How? Delicious desserts, lots of baked products. Shrinking market, yes. Irrelevant? I don't see it.

Why not?

When shopping, Twinkies and Wonderbread is absolutely not on my mind. Neither is Ring Dings, Yodels, Devil Dogs, Yankee Doodles, Sunny Doodles, Funny Bones, or coffee cake. If I'm looking for snacks or cake, none of the above is on my shopping list. Of the Hostess products I have experienced, I have found them all to be bland, too sweet and completely unsatisfying. To me, this is the epitome of junk food.

 

[cgalpha08]

I just had my last twinkie, today so sad

Sent from my DROID BIONIC using Tapatalk 2

 

[f5moab]

I bought two packages today at the Village market.

Unions killed this company. Large bakeries work on a very small profit margin, they are not like the car plants, utilities, heavy equipment mfgrs, etc. With a small profit margin there is no much room to wiggle. It appears from the articles I read, and the information on TV, the bakers union was the killer.

The CEO of hostess actually believes someone might purchase the brand names, but at this time, large commercial bakeries in the US have too much production capacity and not enough actual production, so if the brands are sold, it will not mean they will purchase their locations, just the names. Thus, the people will not get their jobs back.

Sad part is the costs to local, state and federal governments (note taxpayers) for the costs of unemployment, probably some welfare and food stamps, and medical costs.

But does not surprise me. I worked long enough with the unions in TN at the old Saturn plant and found that many would just as soon walk out, lose their jobs, then give in a bit and save their (and other peoples) jobs.

 

[abearden]

Why not?

When shopping, Twinkies and Wonderbread is absolutely not on my mind. Neither is Ring Dings, Yodels, Devil Dogs, Yankee Doodles, Sunny Doodles, Funny Bones, or coffee cake. If I'm looking for snacks or cake, none of the above is on my shopping list. Of the Hostess products I have experienced, I have found them all to be bland, too sweet and completely unsatisfying. To me, this is the epitome of junk food.

It is junk food, but many people still enjoy them and, pardon my assumption, you have a European palate, no? Much different than the American palate. Also, Southern Californian eating habits are much different than most of the nation (where things are still deep friend and smothered in gravy, YUM).

 

[supersapper-rpm]

And another American company bites the dust... I have to admit I liked the nostalgia of the wonder bread brand. I even make my wife buy their whole grain white bread for my sons toast and PB&J sandwiches. We dont buy them often but I got the little guy his first and maybe last twinkie today...WTG unions, got everyone in the company fired right before X-mas.

 

[f5moab]

It is junk food, but many people still enjoy them and, pardon my assumption, you have a European palate, no? Much different than the American palate. Also, Southern Californian eating habits are much different than most of the nation (where things are still deep friend and smothered in gravy, YUM).

You going to smother your friend in gravy?:giggle::giggle: (Couldn't resist:thumbs

 

[DJinCO]

Wow, you guys are tough. My guess is that you didn't grow up having the occasional Hostess treat. I certainly have not had eaten many of them myself, but I did love the little wax covered chocolate donuts.

I can't argue that a diet consisting of a box of donuts a day is not healthy; the unions screwed themselves out of a job and the owners pissed money down the drain.

Sad that the 18,500 employees are without a job and will probably without a doubt be collecting unemployment from the government for anywhere from 72 to 99 weeks. Granted, the unemployment is not the same as a paycheck - Perhaps $500 per week? That number is $9.25 Million per week or $481 Million per year. Pretty soon this adds up to some real money. This is just one company. Businesses are going under, closing doors, every day across the country.

No sense trying to argue the numbers folks, I run numbers every day, all day for DoD, I am a finance manager for DoD; this is not big money for the US Government. That is part of the problem. Until something changes and our elected officials understand that $481M is real money and debt is really hurting the US. The government ( aka taxpayers ) cannot keep bleeding cash.

Today 18,500 people out of work; next week, next month, next year? I am not confident that hoping for change over the next four years is going to work. Hoping is not a viable course of action. I know, it worked for one guy but it sure isn't working for me, or those 18,500 Hostess employees.

 

[f5moab]

And on that note, I'm going to take the pup for a walk, the come home and eat my last package of Twinkies. Damn, in a few years ya'll will be eating tofu and dandelion salads.