Possible no more Twinkies and Wonder Bread

[syrenn]

The closing of the Hostess plants in Cincinnati, Seattle and St. Louis appears to be an object lesson in the evils of vulture capitalism.

Hostess is owned by Ripplewood Holdings, a vulture capital firm, and two hedge funds, Silver Point Capital and Monarch Alternative Capital. As is typical for such parasites, they have loaded the company with debt and are slashing employment and benefits to maintain their profits.

According the union's fact sheet, Hostess has demanded a bankruptcy court allow:

An immediate 8% wage reduction;

The shift of at least 20% more health care costs onto its employees;

Elimination of the employees’ W-1 (retiree medigap insurance) and P-Plan (a pension supplement used to pay health and funeral costs);

Closure of additional plants (10-12), refusing to tell the union which plants are profitable, which plants will be closed, why, etc.

Elimination of the eight-hour work day.

"Outside of court, Hostess unilaterally stopped paying its pension obligations (that is its hourly contributions to the workers’ pension funds), in violation of federal labor law.

These outrages must be stopped. The Hostess workers are standing strong against predatory capitalism for the rights of all American worker. They deserve every patriotic American's full support.

i beg to differ


Its the fucking unions who are screwing it up. I hope the unions stick to their guns..... and everyone loses their job. The walked off the job... fuck um.

 

[syrenn]

An immediate 8% wage reduction;

The shift of at least 20% more health care costs onto its employees;

Elimination of the employees’ W-1 (retiree medigap insurance) and P-Plan (a pension supplement used to pay health and funeral costs);

Closure of additional plants (10-12), refusing to tell the union which plants are profitable, which plants will be closed, why, etc.

Elimination of the eight-hour work day.

"Outside of court, Hostess unilaterally stopped paying its pension obligations (that is its hourly contributions to the workers’ pension funds), in violation of federal labor law.

Time to get the unions back, otherwise the corporate fucks will hang us all out to dry.

time to start hiring non union workers... how want to work.

 

[syrenn]

The company cannot be forced to continue to operate at a loss. Unless the government is prepared to take it over the way they took over GM and prop it up so that it can continue to operate at a loss, this game is over.

I doubt the Company is operating at a loss. More than likely, it wants to divert more of its revenue to dividends for the vulture capitalists who own it.

You might doubt it, but that doesn't make it any less true.

Give the unions what they want. Liquidate the company and let all the workers go. Sell off the equipment for scrap. The unions can take the pennies scrap brings.

This is what always happens to leeches. They eventually kill the host, then blame the host for dying.

in this case... they will kill the hostess.

 

[EdwardBaiamonte]

Hostess is owned by Ripplewood Holdings, a vulture capital firm, and two hedge funds, Silver Point Capital and Monarch Alternative Capital. As is typical for such parasites,

Your liberal ignorance is actually disgusting and very profound. Hostess has been in and out of bankruptcy for decades. Without the venture capitalists, Hostess, the jobs, pensions, benefits, vacations, mortgages and great products would have been gone decades ago.

The only question is, should we be surprised at the disgusting and amazing depth of liberal ignorance or should we calm down realizing it is no more profound than the ignorance that led 100's of millions of our fellow human beings to support Hitler, Stalin and Mao. In fact, our liberals spied for Hitler, or was it Stalin?

 

[BillyV]

Their food is so shitty I will be surprised to learn that even bankruptsy protection will save them.

The bankruptcy is not intended to save the company. It is a step in the standard business plan for an "orderly liquidation". It allows the company to break contracts like employment contracts and do other things it would otherwise not be able to do legally. The key is unfunding the pension plan. This step reveals the company's ultimate objective of a Chapter 7 liquidation after as much cash flow can be wrung out of the company as possible.

Hmmmm. Well, what was the objective of the private equity firm that bought this company?

As a rule, private equity takes on the most troubled companies because turning them around offers the biggest profit opportunities. That's why private equity tends to generate more than its share of traumatic headlines. Look no further than Ripplewood Holdings' decision to put the maker of Twinkies into bankruptcy this week. It's the kind of decision that, were Ripplewood's principals ever to run for office, would get them savaged in an ad.

But guess what? Ripplewood also bought the company, Hostess Brands, out of bankruptcy three years ago, when it was called Interstate Bakeries. Ripplewood is just the latest manager to wrestle unsuccessfully with the company's fundamental problem, a unionized workforce in an industry where competitors aren't unionized.

Jenkins: The Truth About Bain and Jobs - WSJ.com

Why buy it out of bankruptcy only to put it back into bankruptcy? For the record, the above article (and the bankruptcy filing) are from January '12.

From the same link:

Next time you're choosing a fattening indulgence in the checkout line, ask yourself if you're willing to pay extra so Twinkies and Wonder Bread (made by the same company) can arrive at the store on different trucks? So the driver can be excused from helping to unload? So the company can pay workers-comp costs way out of line the industry's? So a company with just 19,000 employees can administer 40 different pension plans?

We didn't think so.

Ultimately, the "vulture capitalist", so called, serves much the same purpose in cleansing the market as its namesake does in the wild, to pick the bones of the dead and dying.

So the bakers union has gone out on strike, even though the Teamsters, with a larger presence, has agreed to a contract; they can even read the writing on the wall:

The Teamsters meanwhile are urging the smaller union to hold a secret ballot on whether to continue striking. Citing its financial experts who had access to the company’s books, the Teamsters say that Hostess’ warning of liquidation is “not an empty threat or a negotiating tactic” but a certain outcome if workers continue striking.

Twinkies maker Hostess Brands says liquidation decision expected Friday - The Washington Post

Tomorrow morning Hostess will decide to either liquidate or not, based upon whether the bakers union returns to work. Hopefully the unions can live with the results of whichever decision they make. We'll find out tomorrow morning whether Twinkies continue to ruin both our health and our waistlines, or 18,000 employees make first time claims for unemployment next week. I'll be sad that if my favorite midnite college snack goes the way of the VCR, but won't blame the owners.

 

[Rshermr]

Their food is so shitty I will be surprised to learn that even bankruptsy protection will save them.

The bankruptcy is not intended to save the company. It is a step in the standard business plan for an "orderly liquidation". It allows the company to break contracts like employment contracts and do other things it would otherwise not be able to do legally. The key is unfunding the pension plan. This step reveals the company's ultimate objective of a Chapter 7 liquidation after as much cash flow can be wrung out of the company as possible.

Hmmmm. Well, what was the objective of the private equity firm that bought this company?




Why buy it out of bankruptcy only to put it back into bankruptcy? For the record, the above article (and the bankruptcy filing) are from January '12.

From the same link:

Next time you're choosing a fattening indulgence in the checkout line, ask yourself if you're willing to pay extra so Twinkies and Wonder Bread (made by the same company) can arrive at the store on different trucks? So the driver can be excused from helping to unload? So the company can pay workers-comp costs way out of line the industry's? So a company with just 19,000 employees can administer 40 different pension plans?

We didn't think so.

Ultimately, the "vulture capitalist", so called, serves much the same purpose in cleansing the market as its namesake does in the wild, to pick the bones of the dead and dying.

So the bakers union has gone out on strike, even though the Teamsters, with a larger presence, has agreed to a contract; they can even read the writing on the wall:

The Teamsters meanwhile are urging the smaller union to hold a secret ballot on whether to continue striking. Citing its financial experts who had access to the company’s books, the Teamsters say that Hostess’ warning of liquidation is “not an empty threat or a negotiating tactic” but a certain outcome if workers continue striking.

Twinkies maker Hostess Brands says liquidation decision expected Friday - The Washington Post

Tomorrow morning Hostess will decide to either liquidate or not, based upon whether the bakers union returns to work. Hopefully the unions can live with the results of whichever decision they make. We'll find out tomorrow morning whether Twinkies continue to ruin both our health and our waistlines, or 18,000 employees make first time claims for unemployment next week. I'll be sad that if my favorite midnite college snack goes the way of the VCR, but won't blame the owners.

If this is a typical vc liquidation, the VC company will make millions, the owners of Hostess will make millions, and some company, another bakery organization, will buy the assets for pennies on the dollar, and the employees will loose everything. If you believe this is the capitalism that adam smith had in mind, I have some beach front I could sell you. Ain't monopoly power great?

 

[Politico]

Outrages? Hostess is a business. You would do the exact same thing if you were in charge. And they are not going anywhere.

 

[RosieS]

The bankruptcy is not intended to save the company. It is a step in the standard business plan for an "orderly liquidation". It allows the company to break contracts like employment contracts and do other things it would otherwise not be able to do legally. The key is unfunding the pension plan. This step reveals the company's ultimate objective of a Chapter 7 liquidation after as much cash flow can be wrung out of the company as possible.

Hmmmm. Well, what was the objective of the private equity firm that bought this company?




Why buy it out of bankruptcy only to put it back into bankruptcy? For the record, the above article (and the bankruptcy filing) are from January '12.

From the same link:


Ultimately, the "vulture capitalist", so called, serves much the same purpose in cleansing the market as its namesake does in the wild, to pick the bones of the dead and dying.

So the bakers union has gone out on strike, even though the Teamsters, with a larger presence, has agreed to a contract; they can even read the writing on the wall:

The Teamsters meanwhile are urging the smaller union to hold a secret ballot on whether to continue striking. Citing its financial experts who had access to the company’s books, the Teamsters say that Hostess’ warning of liquidation is “not an empty threat or a negotiating tactic” but a certain outcome if workers continue striking.

Twinkies maker Hostess Brands says liquidation decision expected Friday - The Washington Post

Tomorrow morning Hostess will decide to either liquidate or not, based upon whether the bakers union returns to work. Hopefully the unions can live with the results of whichever decision they make. We'll find out tomorrow morning whether Twinkies continue to ruin both our health and our waistlines, or 18,000 employees make first time claims for unemployment next week. I'll be sad that if my favorite midnite college snack goes the way of the VCR, but won't blame the owners.

If this is a typical vc liquidation, the VC company will make millions, the owners of Hostess will make millions, and some company, another bakery organization, will buy the assets for pennies on the dollar, and the employees will loose everything. If you believe this is the capitalism that adam smith had in mind, I have some beach front I could sell you.
Ain't monopoly power great?

Hit the nail on the head. One way to fix this is to curtail monopoly power. Require venture capitalists to actually run the venture under court supervision. Curtail unions somewhat during this time but give them the right of first refusal: if the company is still not a going concern after 5 years, give the unions the first crack at buying it at a reasonable price set by the court. Allow the original owners to buy the company back if the unions don't want to, or can't, buy the company.

The abuse of corporate bankruptcy law is even worse than the merger and acquisitions scams that nearly brought down the stock market some years back.

It is past time to cage up these vultures.

Regards from Rosie

 

[Joe Steel]

Their food is so shitty I will be surprised to learn that even bankruptsy protection will save them.

The bankruptcy is not intended to save the company. It is a step in the standard business plan for an "orderly liquidation". It allows the company to break contracts like employment contracts and do other things it would otherwise not be able to do legally. The key is unfunding the pension plan. This step reveals the company's ultimate objective of a Chapter 7 liquidation after as much cash flow can be wrung out of the company as possible.

Hostess announced plans to liquidate this morning. While many lives will be disrupted, the employees have done the right thing by rejecting the vulture capitalist's ultimatums. We have passed the point where we can trust capitalists to act in ways which will serve the American People. They have shown themselves to be unworthy of our trust. They have betrayed us. We should instead turn to the valiant Hostess workers for inspiration. By rejecting the outrageous terms dictated to them by the parasites who own Hostess, they have struck a blow for working Americans.

 

[Wry Catcher]

This step reveals the company's ultimate objective of a Chapter 7 liquidation after as much cash flow can be wrung out of the company as possible.

you mean it reveals capitalism's ultimate objective, an objective that can only be controlled by communism!!

Why do treasonous anti-American liberal communists like you support the interests of workers over the interests of consumers who benefit from the lower prices that must come with lower wages??

Answer: because satisfied customers won't help you start Barry's treasonous Marxist revolution. No surprise given that Barry had 2 communist parents and voted to the left of Bernie Sanders, the only open communist in the Senate.

Now that you know you are being used as Barry's Marxist puppet how do you feel?

This post demonstrates how little you know about economics. I suppose you believe your use of inflammatory language makes what you write credible, suggesting there is much more you know very little about.

 

[Nova78]

Its official now.

Hostess, the maker of Twinkies and Wonder Bread, plans to go out of business, lay off its 18,500 workers and sell its snack cake and bread brands.

Greedy union wages and pensions,now you can go get on the Obama welfare train,choo-choo.......

 

[Katzndogz]

You know democrats are going to say Hostess deserves to go out of business because they are greedy capitalists.

If we were going to jump the gun on democrats, we'd be saying GOOD right now.

 

[TakeAStepBack]

Who needs jobs anyway? I thought we got passed that whole work thing with Hope and Change?

 

[Ragnar]

Which old Ding Dong?

The Hostess Ding Dong!

Ding Dong the Ding Dong cake is dead.





Hostess to close, cites nationwide worker strike

Hostess, the maker of Twinkies and Wonder Bread, plans to go out of business, lay off its 18,500 workers and sell its snack cake and bread brands.

The Irving, Texas, company said a nationwide strike crippled its ability to make and deliver its products, which also include Ding Dongs, Ho Ho's and Home Pride bread.

Hostess suspended bakery operations at all its factories and said its stores will remain open for several days to sell already-baked products.

 

[Wry Catcher]

I'm sure the assets of the company can be destroyed before the vulture capitalists can sell of everything and purchase another entity to cannibalize. There must be enough sugar on hand to fill every truck's fuel tank, enough knowledge of the machinery to make sure it never works again, and enough dirty little secrets to be broadcast across the Internet.

Is this what capital wants: To precipitate violence, blame the workers while taking no responsibility for their actions, as a means to an end - busting unions across America?

Labor needs capital, and capital needs labor! Until both sides wake up violence will not be far away. Unions understanding the economic conditions are making accommodations; capital's greed seems unabated. The Romneys of the world feel entitled to large incomes built on the backs of others and if they continue down this road we may very well see a return to the past and the violence the 1930's.

 

[LadyGunSlinger]

Yep.. Shriveled up.. Flaccid - something liberals are famous at doing. .. Killing a ding dong. ;-) Just ask the NOW Hag types.. Bulldyke city.

 

[Moonglow]

3rd thread so far, I know of more junk, food junkies. They'll be more threads

 

[TakeAStepBack]

Are you really this stupid, wry? Don't answer that. Your post answers it for you.

 

[Rat in the Hat]

3rd thread so far, I know of more junk, food junkies. They'll be more threads

5th thread so far. But who's counting?

 

[BillyV]

Their food is so shitty I will be surprised to learn that even bankruptsy protection will save them.

The bankruptcy is not intended to save the company. It is a step in the standard business plan for an "orderly liquidation". It allows the company to break contracts like employment contracts and do other things it would otherwise not be able to do legally. The key is unfunding the pension plan. This step reveals the company's ultimate objective of a Chapter 7 liquidation after as much cash flow can be wrung out of the company as possible.

Hostess announced plans to liquidate this morning. While many lives will be disrupted, the employees have done the right thing by rejecting the vulture capitalist's ultimatums. We have passed the point where we can trust capitalists to act in ways which will serve the American People. They have shown themselves to be unworthy of our trust. They have betrayed us. We should instead turn to the valiant Hostess workers for inspiration. By rejecting the outrageous terms dictated to them by the parasites who own Hostess, they have struck a blow for working Americans.

Interestingly enough, the Teamsters disagree with you...

The BCTGM (Bakery, Confectionary, Tobacco and Grain Millers International Union) chose a different path, as is their prerogative, to not substantively look for a solution or engage in the process. BCTGM members were told there were better solutions than the final offer, although Judge Drain stated in his decision in bankruptcy court that no such solutions exist. Without complete information, BCTGM members voted by voice votes in union halls. The BCTGM reported that over 90 percent rejected the final offer and three of its units ratified the final offer.

On Friday, Nov. 9, the BCTGM began to strike at some Hostess production facilities without notice to the Teamsters despite assurances they would not proceed with job actions without contacting the Teamsters Union. This unannounced action put Teamster members in the difficult position of facing picket lines without knowing their right to honor such a line without being disciplined.

As is our longstanding tradition, Teamster members by and large are honoring Bakery Worker picket lines when encountered and complying with their contractual obligations when not encountering picket lines. The BCTGM leaders are putting Teamster members in a horrible position – asking them to support a strike that will put them out of a job when they haven’t even asked all their members to go on strike.That strike is now on the verge of forcing the company to liquidate – it is difficult for Teamster members to believe that is what the BCTGM Hostess members ultimately wanted to accomplish when they went out on strike. We may never know unless the BCTGM members, based on the facts they know today, get to determine their fate in a secret ballot vote. Teamster members would understand that the will of the BCTGM Hostess membership was truly heard if that was the case.

Teamsters: Bakery Workers Should Hold Secret Ballot Vote at Hostess | International Brotherhood of Teamsters (IBT)