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Posted on 11/29/2012 8:18:43 PM PST by 2ndDivisionVet
New York - Hostess Brands got final approval for its wind-down plans in bankruptcy court Thursday, setting the stage for its roster of snack cakes to find a second life with new owners - even as 18,000 jobs will be wiped out.
The company said in court that it's in talks with 110 potential buyers for its iconic brands, which also include Ding Dongs and Ho Hos. The suitors include at least five national retailers, such as supermarkets, according to a financial adviser for the company. The process has been "so fast and furious," Hostess hasn't been able to make the calls seeking buyers it previously intended, said Joshua Scherer of Perella Weinberg Partners...
(Excerpt) Read more at cbsnews.com ...
Twinkies, hecho in Mexico...
I wonder if those union workers are having any second thoughts? They’ll probably coast on UE for 2 years but what will that do for their employment opportunities in the future?
I hope they make a ton of money and stick it to the union!
I will go mad if I don’t get another Devil Dog for the rest of MY life!!!
Whoever buys it, PLEASE keep to the recipe!
It’s going to get parted out
Whether the workers get the same salaries and bennies is still up in the air.
Mother's and Archway were put temporarily out-of-business due to speculative LBO's, but they are both back and operating.
“Even as 18000 jobs are wiped out”
...that is comedy at it’s best! More like 18000 union goombahs! Bwahahahahahahahaha
I just love the waxy petroleum aftertaste of DingDongs!
Labor Union File.
I read somewhere that they are seeking permission to give out a treasure chest of bonuses as they go bankrupt.
By the way, does anyone else find it funny that these objets are called Hostess? Would you invite people over and serve them Twinkies? The time-honored practice of calling things what they aren’t in order to move the crap off the shelves.
That name is almost 100 years old. Things were much different back then.
Good, I think. Lots of companies grow by acquisitions that never realize the synergies they were based on, and would be more profitable if they were parted out. Not only will the companies who end up owing pieces of Hostess shed the unions (they’re nuts if they don’t at least) - but they may be smaller privately-held companies who aren’t under the quarterly pressure faced by public companies that often results in them doing insane things just to “make the numbers”
I wouldn’t be surprised if in 10 years the new companies end up with more then 18,000 employees. Creative destruction at work.
Many of these companies probably already own their own bakeries and only need the brand name rights and recipes.
Homemade goodies were even better back then, and it was even more ridiculous to serve any store-bought tripe to guests. Regardless of Madison Avenue misnomers.
Are Uneeda Biscuits still around? You don’t need them and they’re not biscuits.
Kinda sucks that Hostess got themselves into this mess in the first place
by allowing Unions control over their business. I may start buying twinkies again
since the union will be gone. I won't eat them but the food bank would love them I'm sure.
“I read somewhere that they are seeking permission to give out a treasure chest of bonuses as they go bankrupt.”
OK, you’ve made the allegation, now give us the site, or are you just stirring some pot?
It was on Drudge yesterday. It comes up as the first result if you put "Hostess" into Google.
You're exactly right in that many highly interested buyers will be existing novelty food bakers. In fact, some could already bake Hostess products on a toll basis. The equipment used for novelty baking is generic and to swap from one product to another simply means a recipe change, different pans, different oven conditions, packaging, etc.
These bakeries basically schedule production for a 1 day run that will be about 10 to 14 hours of production, 6 hours of sanitation that includes disassembly of a lot of of the equipment and last reconfiguring the equipment and preparing new batters, etc.
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