Posted on 11/20/2012 7:49:57 PM PST by Nachum
Last week, when discussing the next steps for the company, and specifically the hope that mediation may resolve the epic animosity between management and workers, we stated that "What makes a mediation improbable is that the antagonism between the feuding sides has certainly hit a level of no return: "Several unions also objected to the company's plans, saying they made "a mockery" of laws protecting collective bargaining agreements in bankruptcy. The Teamsters, which represents 7,900 Hostess workers, said the company's plan would improperly cut the ability of remaining workers to use sick days and vacation." Sure enough, moments ago we learned that mediation has now failed and the liquidation may proceed. And since in America nobody understands that proper sequence of events involved in a bankruptcy liquidation, where the valuable parts always end up being acquired by someone, in this case the Twinkie brand and recipe, let the pointless Ebay bidding wars over twinkies continue. As for what really happens next, if indeed Bimbo is prohibited from acquiring the assets in the Stalking Horse auction due to anti-trust limitations, then the buyer will almost certainly be a "financial", i.e., another PE firm, whose coming means the end of any hopes and dreams of preserving union status at fresh start Hostess, or whatever the new firm will be named.
From the WSJ:
Hostess Brands Inc. said Tuesday night it would proceed with liquidation plans after mediation fails.
Earlier Tuesday, the head
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The fruits of greed and corruption. This is how commrades of the communist unions operate. Hate, lies and destruction.
18,500 American jobs headed to MEHico and the union declares a great victory! Way to go knuckledraggers!!! Party hard!
Red on red.
BTTT.
any investor would be a fool to buy Hostess - the unions make this an impossible buy.
Perhaps a little blanket meeting in the parking lot is in order.
This driver made $130K a year. Hostess needed it cut to $120K. This guy makes the UAW look like a bunch of paupers.
Makes more sense to buy the patents, the distriburting rights and teh euipment.
Pack it all up and ship it to a right to work state. Start again there.
Makes more sense to buy the patents, the distriburting rights and teh euipment.
Pack it all up and ship it to a right to work state. Start again there.
An 8% cut would shave $200 a week off the employee’s income? Let’s see...that means 1% would be $25.... So times one hundred....carry the seven.....why......that’s like $2500 a week!.....$10,000 a month.....$120,000 a year!....what if that’s net?......Ho-Ho indeed!
Someone may buy the name, recipes, and trademarks, but I seriously doubt anyone is buying the company as currently structured.
Bet that Thanksgiving dinner will be a sad occasion for 18,000 families.
The beauty of liquidations is that union contracts are torn up, and there's no obligation to hire a single union worker or even buy the existing plants. Bimbo could make everything in Mexico.
If they buy the assets and not the corporation they won’t be stuck with the unions.
Not saying you’re wrong but what legal lever can unions use to do that? If there is a law that says you may not close a business then we are already have a fascist dictatorship.
I suppose there are pensions. I wonder if they are fully funded?
“18,500 American jobs headed to MEHico and the union declares a great victory! Way to go knuckledraggers!!! Party hard!”
Maybe not! Did you read the bit about the anti-trust laws that may well scuttle the Bimbo bid? A perfect world here would be for a non-union bakery to buy Hostess’ assets and leave these morons sitting on their front porches!
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