Last Stand for Twinkie the Kid? *UPDATE* Andy April 18, 2012 Junk Food, News, Snacks 1 Comment **Updated November 16th 2012** BREAKING NEWS VIA THE ASSOCIATED PRESS Hostess to close, cites nationwide worker strike IRVING, Texas – “Hostess Brands says it is going out of business, closing plants that make Twinkies and Wonder Bread and laying off all of its 18,500 workers. The Irving, Texas, company says a nationwide worker strike crippled its ability to make and deliver its products at several locations. Hostess had warned employees that it would file a motion in U.S. Bankruptcy Court to unwind its business and sell assets if plant operations didn’t return to normal levels by Thursday evening. The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade” —— Will it be Teamsters who ultimately decide when the once mighty maker of Ding Dongs, Twinkies and Ho Ho’s is taken off life support? A contentious labor dispute has led to a courtroom showdown between Hostess Brands and their union, which began yesterday, one that may decide the iconic snack company’s final destination. Up until now, the union representing 7,500 Hostess employees, hasn’t been able to come to any contract agreements with the bankrupt seller of Snoballs. Hostess has repeatedly stated that current labor and pension costs are unachievable considering the present state of the snack cake union. Should Hostess lose this battle, it means being forced back into talks with the Teamsters. Should Hostess prevail, it gives them the ability to pull the chute on any further talks, so they can continue focus on salvaging. Hostess argues that they’ve done everything they could to balance reduction of pension, health plan et al so that workers can continue with employment, while helping the company continue through the restructuring & refinancing timeline. Even if Hostess wins this round, you can bet your bottom dollar Union member in the Twinkie-verse will Strike sooner than you can say “artificial crème filling” This of course, according to Hostess big wigs, would mean the end of the company as we know it and it would soon have to shutter all processing, distribution & sales. Liquidation would follow shortly after. The bankruptcy judge is expected to make a decision on Hostess’ union contracts in several weeks. So yes, the end of an era in golden sponge cake snacks could be a reality sooner than later. Little Debbie is buying the first round at the wake. The following two tabs change content below.BioLatest Posts Andy Latest posts by Andy (see all) Say Whaaaaat? McRib Won’t See National Roll Out. - November 20, 2013 Quick Bite: McDonald’s New Veggie McWraps - August 29, 2013 Quick Bite: Lay’s Canada “Do Us A Flavor” Finalists. - August 1, 2013 One Response Adam April 18th, 2012 Hostess may shutter it doors but I don’t think Twinkies will go away. There is too much value in the brand. More likely, Hostess will liquidate and someone will buy the brands and start making them under a different label. Probably a big conglomerate like Kraft or Nestle. Reply Leave a ReplyYour email address will not be published.CommentName* Email* Website Save my name, email, and website in this browser for the next time I comment. Notify me of follow-up comments by email. Notify me of new posts by email. Current ye@r * Leave this field empty
Adam April 18th, 2012 Hostess may shutter it doors but I don’t think Twinkies will go away. There is too much value in the brand. More likely, Hostess will liquidate and someone will buy the brands and start making them under a different label. Probably a big conglomerate like Kraft or Nestle. Reply
