Posted on 11/16/2012 4:34:48 AM PST by RabidBartender
Hostess Brands Inc., the maker of the iconic snack, announced today that it will liquidate the entire company because not enough striking employees returned to work by a Thursday evening deadline set by the company.
"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."
Hostess said it will seek bankruptcy court permission to close its business and sell its assets, "including its iconic brands and facilities. Bakery operations have been suspended at all plants."
"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," the company said in a statement.
"We simply do not have the financial resources to survive an ongoing national strike," Rayburn said in a statement Wednesday. "Therefore, if sufficient employees do not return to work by 5 p.m., EST, on Thursday to restore normal operations, we will be forced to immediately move to liquidate the entire company, which will result in the loss of nearly 18,000 jobs."
More at link
(Excerpt) Read more at abcnews.go.com ...
Hey Jerks save your signs to burn for heat,
Hostess trademarks and recipes will get sold to a foreign company.
Obamacare is the bigger tipping point from here on. Get ready for many years of the effects of wealth flowing out of this country.
Boy that is going to put a dent in the jobless numbers.
“I’m not even suggesting that unions are all bad here...”
We’ll do that for you. They have NOTHING to offer these days but suffering for the working man. In the long-ago past, yes, they were needed. Now all those reasons are gone with safety and workplace health laws, along with the threat of lawsuits and criminal prosecution when “the man” abuses his ‘oppressed’ workers.
I am.
Unions are enemies of America.
-——Hostess trademarks and recipes will get sold to a foreign company.-——
I would argue that the asset buyer is already known. The productive and desirable assets will be utilized in a new company in say Texas where there will be no union.
The subsequent growth can take place in right to work states free of union shackles.
Obama/Holder have no power in Texas
So, you have a union whose leadership is so stupid they can't understand that the company is broke, yet other unions know it's broke.
Sounds more like a stupidity thing than unionism per se.
What kind of union boss fool tells the members/workers to strike in this economy?
“Sounds more like a stupidity thing than unionism per se.”
Let’s put it another way. If there was no union, there would have been no strike, and 18,000 people (probably more, if no union) would still have a job today.
NOTHING good comes of unions, whether it’s stupidity or outright evil. In this case, it may have been some of both.
I suspect the short shelf-life stuff will be discarded immediately and all non RTW state sites will be sold off totally and shipped off.
Why not. Move the machines and leave the shell.
Basically the 1950's model baked goods producers and marketers are all going under ~ unless they change.
For a while, the Yankees, and that includes Ding Dong loving Neil Cavuto, will lead deprived lives.
There will be no Twinkees or Ding Dongs for a while in Yankeeland
“You are forgetting that there’s a management team behind this company’s activities ~ and union or not they’d be going out of business anyway...”
I don’t think ANYONE can do what-ifs in these types of cases. We have plenty of poorly managed companies here in Texas, but they a HUGE BOOST by having a flexible, non-angry, workforce, that wants them to succeed - rather than wanting to stick it to them.
But even if you’re right, these workers will have still kept their jobs for a while, maybe long enough to outlast Obama. But the UNION prevented any of that.
It's also good for reduction in carbon emissions and demand for petrochemicals.
If this keeps up, Nancy, Harry, and Barry are going to find out there is no money for unemployment to create jobs (i.e. who do you tax when no one works).
Unions: always there to kill jobs and destroy companies.
“This website is intended to provide answers to many of the most common questions related to the Wind Down of Hostess Brands.”
...and if it was really a misunderstanding, I have NO DOUBT that the union will show up in bankruptcy court and agree to the terms of Hostess, thereby preventing liquidation.
No doubt. After all, they certainly can’t be happy with the outcome (so far).
This is the only message the unions understand. Let them draw unemployment until the treasury runs dry. Perhaps, then, they will learn what the rest of already know.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.