Hostess gets OK to begin winding down business
WHITE PLAINS, N.Y. (AP) - A bankruptcy court judge is approving a request by Hostess Brands Inc. to begin winding down its operations.
The ruling came Wednesday after the maker of Twinkies and Ding Dongs failed in last-ditch negotiations to end a strike by its second-largest union.
Hostess now has the green light to terminate the jobs of its 18,000 workers and sell off its brands.
In court Wednesday, Hostess said it needed to begin the liquidation process quickly to take advantage of outside interest in its brands, which a banker said could fetch up to $2.4 billion. That's about how much they generate in annual sales.
Hostess, based in Irving, Texas, has been spending about $1 million a day in payroll without any income since it halted operations last week.
The ruling came Wednesday after the maker of Twinkies and Ding Dongs failed in last-ditch negotiations to end a strike by its second-largest union.
Hostess now has the green light to terminate the jobs of its 18,000 workers and sell off its brands.
In court Wednesday, Hostess said it needed to begin the liquidation process quickly to take advantage of outside interest in its brands, which a banker said could fetch up to $2.4 billion. That's about how much they generate in annual sales.
Hostess, based in Irving, Texas, has been spending about $1 million a day in payroll without any income since it halted operations last week.
Well, at this point, it doesn't really matter who is at fault or why. The media says one thing, and then more ideas are spouted from somewhere else. It's a moot point. All that matters is that there are now more than 18,000 new people in the unemployment line who didn't need to be there. Stupidity at it's best.
Funny how the news overlooks how the CEO got a generous bonus and the upper managers all got hefty pay raises, while the employees' retirement account got underfunded by thousands of dollars. Interesting how the issue of the strike is glossed over as the company wanted to cut health care benefits to the core.
Interesting, then I wonder where the money is going that I spent at the Hostess store earlier this week
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"Hostess, Based in Irving, Texas, has been spending about $1 million a day in payroll without any income since it halted operations last week".
 @choliscott accounting is based on matching revenue to expense. Those goods are associated with salaries and expenses that contributed to the product you have already purchased. Because they have shut down operations, but still have employees being paid, there is no revenue to cover the current expense.......but then again.......they didnt have enough revenue to pay the bills they had anyway.Â
I just sold 3 of the little Hostess blackberry pies on eBay for $12.85 + $5.50 shipping. There was a bidding war on them. And my friend just sold 2 boxes of the raspberry filled powdered donuts for $30.
 @Tattooed_Angel I have a box of Twinkies in my pantry that has been sitting there since the forth of July. No one seems to like them here. I will just give them away as Christmas gift now.
 @Just my say  @Tattooed_Angel You could also sell them as an "antique" icon....... just an idea, LOL
 @Tattooed_Angel Dang people are stupid. They really don't realize that their precious diabetes in pockets aren't going away, the rights will be sold and they will continue to be made by some other company like Bimbo.
 @Tattooed_Angel LOL, you evil capitalist you!Â
Hey, I started out the bidding at $3.LOL! It's not my fault that people are going nuts buying Hostess goodies! Besides, it isn't easy! I've got a box full of Hostess yummies and I lay here at night as I'm trying to sleep and I swear the sweets are calling out my name. It's horrible. LOL
 @Tattooed_Angel The old saying still holds true... "a fool and his money are soon parted".
Luckily all those Bake-It-Yourself sites have a Twinkies recipe for those not willing or wanting to pay asinine amounts for Hostess on eBay. Example: http://allrecipes.com/recipe/homemade-twinkies/
 @DarkRenegade I love allrecipes... I have gotten some of my favorite recipes from them.
So much for all the drivel in prior posts/articles.
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If you union enthusiasts are all that, start yer own company and see what it's like.
What!? You just wanna leech off someone else? Don't wanna sacrifice everthing you got on a whim of getting ahead on yer own?
Someone else should support yer sorry butt?
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I'm laughing at you. You don't have a clue, self respect, obligation to family, or common sense. You helped make yer bed, so sleep in it. And when ya do, you continue to demand room service to change the sheets.
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Hahaha....
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 @bobalouie Do you wake up every morning thinking "how am I going to make an ass of myself on the internet today?"
 @bobalouie What's it like to be a terrible person? Someone who doesn't read, research, or care?  How does it feel to be the prime example of the FYGM attitude?  You are everything that is wrong with America in a nutshell.
 @quidproquo  @bobalouie How can you be mad at that cute little kitten face... he meows and meows... that's all it is... cute little kitten meows.Â
 @quidproquo  @bobalouie Say Squid,you do not have a clue how a business works or anything about life. it is the owners who take the risk ,not the employee. it is the owner who has to get all the licenses,permits,follow all the never myriad of always changing regulation. especially since Obama came in. Business is the heart of AMERICA,without your job,pension, standard of living goes out the window. Look at how your pension is funded. They {Pension Board} buy stock in companies,most are invested in _____ Anyone ___anyone ___ Bueller ? You got it ,__ Walmart.Why?? because they make a PROFIR{Progressive evil word } . Without profit the company goes under along with your job ,house,car. So go enjoy living your tent.
 @Maynard G Krebbs  @quidproquo  @bobalouie I think you might have meant profit... just trying to help = )
Relax...most of the popular Hostess goods will live on under another brand name. Its funny, no one gave a rip about twinkies two weeks ago...
 @NoCoothJoe That's because they continue to be the most oily disgusting sweet item in existence. The only good thing hostess made was donettes and even those have a horrible waxy taste now.
 @quidproquo  @NoCoothJoe LOL, yes they do......I wonder how much paraffin is used in the "chocolate" frosting...
Hmmm take a 8% pay cut like the other union workers or be cut?Â
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Bakers Union you sure showed them, who are the leaders at these unions? Sounds like spoiled brats to me
 @Nathan Boi Enjoy your holiday and weekend Nathan.
 @Nathan Boi Orrr you could do something crazy like read a real report on the history of hostess and why it went bankrupt... http://management.fortune.cnn.com/2012/07/26/hostess-twinkies-bankrupt/
http://www.thenation.com/blog/171331/vulture-capitalism-ate-your-twinkies#
'Vulture capatalism'? What the heck is that?
When is a business owner slave to the employees?
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Wait, don't tell me... You are more important than the one that employs you? Got it.
Entitled much?
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@bobalouie So when are you going to pull your head out of your litter box and do some actual research and reading? If you can even comprehend what you read that is.
@bobalouie bwahahahahaâ¦.. Yeah right. I am definitely not a slave and I obviously think, analyze, and etc. a heck of a lot better than you obviously doodoo. What you seem to be calling your âthinkingâ is more like you playing with your poo in your litter box.
You funny! Be a slave if ya want as it appears ya can't think on yer own.
Good luck.
 @bobalouie What's the matter with the idea that we are all equal and you can't have a business with out the workers so if you treat your workers like dirt they will leave. You didn't see any scabs trying to take the old jobs did you?You can't expect to cut your workers pay and then give yourself a raise and not expect a backlash. Ever.Â
 @quidproquo Really? If we're equal, make up yer own company.
I lnow it's a concept you can't understand, but maybe you should try to help yourself instead of relying on others for your ignorance. Or do you depend on someone else to make your decisions?
Guess the union showed Hostess who's the boss.
Everyone should run right up and kiss their Union worker. Thanks to them Hostess is now history. The Twinkie and Hoho might live on but not baked by Hostess. Thank you ever so much you lovely union ba*tards!!!
 @LongBeachBum And just so you know, i'm not in a union and have never been apart of one. I'm just a blame where blame is due sort of person.
That's a funny headline. I'm encouraged to know Hostess will be allowed to cease producing unhealthy food.
 @PilonidalCyst So don't buy any, no one is forcing you or anyone to.
Hostess was on its way out for many years.They haven't kept up with the times on new products. The biggest debt that they owe is money that is owed to the workers pension fund. The money that was to go into that fund was used else where, or taken out to support the company. The raiders now will sell the crumbs and the union and non-union workers will loose their pension money. Enron? Social Security?
http://www.wright.edu/administration/aaup/OL/OL-2012-01/2012-01-OL-18.pdf
 @rockguy This is probably the most accurate statement on here. If Hostess had still been publicly traded they would have had to comply with a higher degree of visibility......but by privatizing the company the bad practices could go largely go unseen and while management may be an easy scapegoat just as bad union direction could the reality is the owners (venture capitalist) had the most control over the direction of the company. They had the most control over the management team and they clearly did not have the best interest of the company at heart.Â
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@deadcandance Looks like they are going to have to fry Little Debbie instead
 @deadcandance they have broccoli deep fried in chocolate
Might put a dent in the diabetes sweeping this country..
 @Windowseat Doubtful, there are still plenty of companies putting out products to help expand our waistlines. Little Debbie's is still very strong...of course they also bought out several healthy companies and have a much more diversified line outside sugary snacks. Of course Diabetes isnt caused by sugar snacks....but over weight people are at higher risk.
 @Susabelle  http://www.motherjones.com/environment/2012/10/sugar-industry-lies-campaign?page=1  Read this and try again. Over consumption of sugar is killing us. Like everything else, moderation is key but most americans should cut their consumption by half.
@quidproquo @Susabelle Family history is also part of it.
 @quidproquo Here is a really good information source of the causes and general guidelines surrounding diabetes.
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http://www.diabetes.org/diabetes-basics/diabetes-myths/
 @Susabelle Yep! Get thine children to zee park, into the woods, onto the trails - good eating AND a love for the outdoors will last a life time.
 @quidproquo My best friend did too........she didnt eat much sugar....her downfall was carbs... I will not disagree at all that our eating habits combined with a much more sedentary lifestyle has contributed greatly to increased diagnosis of diabetes. Actually the sedentary lifestyle is probably what is the biggest impact to children with obesity issues.
 @Susabelle My roommate got type 2 as a waify adult. It's mostly diet. Eat less carbs, sugars, and move more.
 @quidproquo Since my daughter has been diabetic since the age of 8 (she is 28 now) I have probably read every bit of information under the sun on the subject.  I'm not disagreeing or even commenting that too much sugar is bad and can bring on lots of conditions......I am merely commenting on the incomplete information of pointing to one area. One of the precursors to diabetes is weight, the other contributor that is going largely unnoticed is the fact that in history, diabetics died, they did not go on to bear children or live long healthy lives. In order for anyone to become diabetic you must first have a genetic disposition to the disease, this is true of both Type 1 and Type 2. Your diet has a huge impact on Type 2, but labeling sugar in and of itself the reason is inaccurate.Â