Hostess bankruptcy: Twinkies-maker Hostess Brands to go into liquidation, files for bankruptcy

wptv.com ^ | Nov 16, 2012 | James O'Toole

[LucianOfSamasota]

UPDATE: Twinkies-maker Hostess Brands says it has asked court to allow it to close its business and sell its iconic brands.

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NEW YORK -- Is this the end for Twinkies?

Hostess Brands said Wednesday that it will go into liquidation unless bakers striking in protest against a new contract imposed in bankruptcy court return to work by the end of the day Thursday.

"We simply do not have the financial resources to survive an ongoing national strike," Hostess CEO Greg Rayburn said in a statement.

The liquidation would result in Hostess' nearly 18,000 workers losing their jobs. The bakers' union represents around 5,000.

The union did not immediately respond to a request for comment Wednesday, but has called the concessions demanded in the new contract "outrageous."

"Our members are on strike because they have had enough," bakers' union president Frank Hurt said in a statement Tuesday. "They are not willing to take draconian wage and benefit cuts on top of the significant concessions they made in 2004 and give up their pension so that the Wall Street vulture capitalists in control of this company can walk away with millions of dollars."

[reg45]

The Teamster's Union which represented delivery employees approved of the contract. It was the Baker's union that rejected it. So, now, both groups of employees are unemployed, as well as non-union employees.

[reg45]

Sadly, the union president will keep his job - it’s a one percenter job - while the rank and file workers from the factory and the delivery people will lose theirs.

[reg45]

In order to supply fresh product, bakeries are located close to their customers. This necessitates having bakeries in almost every state.

[Captain Peter Blood]

I have yet to read anywhere exactly what the contract offer was. Anyone have a link????????/

[DuncanWaring]

I think the offer was an 8% cut, with compensation being restored to the current level over about a three-year period.

Since 2004, I’ve lost 5% once and 100% three times.

Color me “unsympathetic”.

[Dr. Ursus]

They can outsource to China,since there’s nothing non-chemical in a twinkie!

[LoneRangerMassachusetts]

Trial lawyers lose. There goes the Twinkie defense.

[Mamzelle]

Where are these job losses? The HQ is in north Texas, but the actual layoffs are probably elsewhere, and I can’t find anything about that in any of these stories.

[bigfootbob]

Not with Twinkies, LOL, them and cockroaches are indestructible, except Twinkies have a vulnerability to unions.

[superloser]

Democrats told us if we voted for Mitt Romney there would be massive layoffs. They were right!

[PLMerite]

They’ll end up at the Vermont Country Store:

http://www.vermontcountrystore.com/store/jump/Gifts/Brands_From_The_Past_/cat560003

[ExCTCitizen]

"Our members are on strike because they have had enough," bakers' union president Frank Hurt said in a statement Tuesday.

Had enough Twinkies??

"They are not willing to take draconian wage and benefit cuts on top of the significant concessions they made in 2004 and give up their pension so that the Wall Street vulture capitalists in control of this company can walk away with millions of dollars."

Yes, so you, Mr. Hurt, would rather have people making $0.00/hour then the amount Hostess would pay? Nice Thinking, MORON!!

[Maudeen]

Good one!