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-   -   OT: Twinkies and the NHL (http://hfboards.hockeysfuture.com/showthread.php?t=1283945)

Melrose Munch 11-16-2012 02:02 PM

OT: Twinkies and the NHL
 
For those that think the NHL won't shut down for good...
http://www.chicagotribune.com/busine...,3175964.story

Quote:

No more Twinkies? Hostess plans to shut down

Hostess CEO says strike was fatal blow for bankrupt company and that it is too late to fix it. Nearly 600 could lose jobs in Schiller Park and Hodgkins bakeries.

Reuters

12:56 PM CST, November 16, 2012

Hostess Brands on Friday received a court order for an expedited hearing on its request to
liquidate.

The hearing on liquidation request is scheduled for 2 p.m. Eastern time Nov. 19, in bankruptcy court in White Plains, N.Y.

The bankrupt maker of Twinkies and Wonder Bread, said it had sought court permission to go out of business after failing to get wage and benefit cuts from thousands of its striking bakery workers.

Hostess, which has about $2.5 billion in sales from a long list of iconic consumer brands of snack cakes and breads said it had suspended operations at all of its 33 plants around the United States as it moves to start liquidating assets.

"We'll be selling the brands and as much of the infrastructure as we can," said company spokesman Lance Ignon. "There is value in the brands."

Hostess said a strike by members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union that began last week had crippled its ability to produce and deliver products at several facilities, and it had no choice but to give up its effort to emerge intact from bankruptcy court.

The Irving, Texas-based company said the liquidation would mean that most of its 18,500 employees would lose their jobs.

In the Chicago area, Hostess employs about 300 workers making CupCakes, HoHos and Honey Buns in Schiller Park. Hostess also has a bakery in Hodgkins, where 325 workers make Beefsteak, Butternut, Home Pride, Nature’s Pride and Wonder breads.

Hostess spokesman Tom Becker confirmed that Hostess plants have closed, and the local factories in Hodgkins and Schiller Park ran their last production Friday morning. The company also has a plant in Peoria.

Calls to the Hodgkins and Schiller Park plants were not answered.

"I don't think it's a stretch to say there's a lot of sadness today," Becker said, adding that "18,500 people had jobs yesterday and knew they weren't going to have jobs anymore when they woke up today," referring to Hostess' total employee base.

Shrimper 11-16-2012 02:18 PM

What does a confectionery have to do with the NHL? :help:

digdug41982 11-16-2012 02:20 PM

Some other company is going to buy the brand and nothing will change. Speaking to the Hostess situation specifically, the pay cuts they had already taken and were asked to take again, given that Obama was re-elected, made their situation such that it would be a disadvantage to return to work as opposed to collecting unemployment for the next several years.

Hawkscap 11-16-2012 02:23 PM

or the Hedge Fund that owned Hostess has bled it dry again. CEO and other execs gave themselves some big raises this year.

Quote:

BCTGM members voted to strike Hostess after the company imposed cuts that included ending payments to the employees’ pension plan while executives awarded themselves massive bonuses. Among the raises was a 300 percent raise (from approximately $750,000 to $2,550,000) for the then-CEO of Hostess. At least nine other top executives of the company also received massive pay raises, including one who received a pay increase from $500,000 to $900,000 and another received one that brought his salary from $375,000 to $656,256.

Inkling 11-16-2012 02:27 PM

Just like the NHL, Hostess brands can turn to Canada for safe harbour. :)

Saputo and Weston own the rights to most of the Hostess brands in Canada, so their US bankruptcy does not affect the Great White North.

http://www.theglobeandmail.com/globe...rticle5365001/

DaAnimal 11-16-2012 02:36 PM

Yall better get your twinkies. They never expire so 20 years from now they could be worth a lot.

I know I'm going to buy a few boxes of them :)

LadyStanley 11-16-2012 03:22 PM

Please continue discussion in megathread (where it's been a topic for a while).


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