Hostess to liquidate if bakers' strike continues through Thursday

[Eugene]

Source: CNNMoney

Hostess to liquidate if bakers' strike continues through Thursday

By James O'Toole @CNNMoney November 14, 2012: 6:01 PM ET

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Hostess Brands said Wednesday that it will go into liquidation unless bakers striking in protest against a new contract imposed in bankruptcy court return to work by the end of the day Thursday.

"We simply do not have the financial resources to survive an ongoing national strike," Hostess CEO Greg Rayburn said in a statement.

The liquidation would result in Hostess' nearly 18,000 workers losing their jobs. The bakers' union represents around 5,000.

The union did not immediately respond to a request for comment Wednesday, but has called the concessions demanded in the new contract "outrageous."

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Read more: http://money.cnn.com/2012/11/14/news/companies/hostess-liquidation-thursday/

[Ken Burch]

1. So drop the demands for concessions and settle with the strikers. Not rocket science.

I think the Twinkie fumes may have warped management's brains.

[GitRDun]

2. Most of the debt owed is to the union pensions

So management fucked up by improperly underfunding pensions, bankrupted the company in the process, now want extraordinary relief from the workers, who are outraged...so management gives the ultimate FU...."OK then, if you don't let us bend you over the rail, you will lose it all"....I hate management lol.

A link to my prior post on this topic:

http://www.democraticunderground.com/?com=view_post&forum=1014&pid=302052

[xfundy]

3. Would be even better if the bakers and workers

opened their own shops, making actual "food" instead of a mass of chemicals with HGCS, artificial flavorings, etc.

[Ken Burch]

10. There's something to that...let Hostess go under, then take over its plants

and run them as health baked goods co-ops. They could probably get funding for that.

In fact, that's what should happen in MOST outsourced U.S. business plants...closed factories, bakeries, stores, what have you. Run them as co-ops and create a humane, dignified, democratic business model.

Actually, if possible, the strikers should occupy the Hostess plants NOW...and prepare to run them themselves a.s.a.p. if Hostess chooses to close them.

[zbdent]

14. Could the union purchase the rights to the "Hostess" brand?

[Ken Burch]

15. That might be pricey...if they can't...they can come up with a better name.

n/t.

[socialist_n_TN]

16. There you go. THIS^^^^^^^^^^^^^^^^^^^^^^

INCLUDING the part about occupying the plants NOW.

[cherish44]

4. And the pot smokers of the world lament

At least we still have Little Debbie

[HappyMe]

11. Cookies.

There's always cookies.

[thelordofhell]

5. Yup.....it's the workers.........

Salary Increases at Hostess

Some creditors question Hostess pay raises approved in late July.

Brian Driscoll, CEO, around $750,000 to $2,550,000
Gary Wandschneider, EVP, $500,000 to $900,000
John Stewart, EVP, $400,000 to $700,000
David Loeser, EVP, $375,000 to $656,256
Kent Magill, EVP, $375,000 to $656,256
Richard Seban, EVP, $375,000 to $656,256
John Akeson, SVP, $300,000 to $480,000
Steven Birgfeld, SVP, $240,000 to $360,000
Martha Ross, SVP, $240,000 to $360,000
Rob Kissick, SVP, $182,000 to $273,008

[Initech]

6. The makers vs. the takers. Hmm... which one is which?

indeed.

[Takket]

8. Hey, i just found them an extra $3,854,776 and i'm not even an accountant!

[undeterred]

7. How do you liquidate DING DONGS...

[BlueMan Votes]

9. by eating way too many of them.

[HappyMe]

13. Where should we report

to pick some up?

[Ken Burch]

12. Not sure if there were ever liquid ingredients in those things.

My theory is...most Hostess products are made from substances not of this world.

[RegieRocker]

17. How many times does this have to occur

before all of us know the scam. The writing is on the wall. They will sell out or close several facilities anyway soon after a settlement. Be in control of your own destiny and take the f+ckers down with you. The result is still the same. No future with Hostess. Find another job or something.