Wal-Mart wants to save the Twinkie
The retailing giant is one of several bidders reportedly interested in purchasing parts of Hostess Brands.
According to Bloomberg News, the largest retailer is making a run for the assets of Hostess Brands, the bankrupt maker of Twinkies, Sno-Balls and Wonder Bread. Other bidders include grocery chain Kroger Co. (KR) and Grupo Bimbo, the Mexican conglomerate whose brands include Entenmanns's baked goods and Thomas' English muffins. Some of the bids are for all the company's assets and others are for lines of business and individual products, the news service said.
The interest is a sign that Hostess, which has begun to liquidate its assets after unionized workers balked at agreeing to additional concessions, will live to fight another day in some form or another.
The 18,000 Hostess employees who lost their job shouldn't rejoice quite yet. Any new owner of Hostess or its businesses will not be bound by any agreements that prior management made with the unions. A new buyer may demand wage concessions as steep, if not steeper, than the ones demanded by the current owners. Sadly, the $1.8 million that the bankruptcy court approved as retention bonuses for top executives will be paid no matter what.
Members of the Bakery, Confectionery, Tobacco Workers and Grain Millers Union say they are not to blame for the company's demise. Its website argues that its members dedicated their working lives to their work and had to "watch helplessly as the company was run into the ground, over and over again." Ironically, I attended a conference on corporate restructuring a few years ago where Hostess was touted as a success story.
Even if Hostess had the best labor relations in the world, the company would face a tough road ahead. For one thing, the costs for ingredients have skyrocketed this year as U.S. crops withered following the worst drought in more than five decades. America's dietary habits have also changed in the wake of soaring rates of obesity.
Take Twinkies. When I grew up in the 1970s and 80s, parents would think nothing of putting the creme-filled spongecake in a kid's school lunch. Today's parents would think twice before letting their children eat something so unhealthy.
Hostess products such as Twinkies are like newspapers. People like them in theory, but can't remember the last time they bought one. That needs to change if Hostess hopes to survive.
--Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr
DON'T SELL TO WALMART! Out of all the potential buyers this company would be the worse. They will only allow to be sold in their stores. No more gas stations, mom-and-pop stores will ever see them again. Think of American Interstate brands, don't totally screw over the customers that were always so loyal to the brand. Sell to a company who will distribute them to ALL stores. Not the crappy Walmart monopoly. That would be even a sadder day in America!
More fuel for the WalMachine. Twinkies and WalMart customers- an ideal, perfect match.
Wal-Mart is a monopoly!!!!! people just can't see that,....everybody should watch the video WAL-MART THE HIGH COST OF LOW PRICES!!!! every time you shop at WALLYWORLD! you promote welfare , foodstamps, fuel assistance, gov. paid health care for there employees,.etc, most of there employees are on some kind of GOV. assistance.. 28 HOURS IS A FULL TIME JOB FOR THERE EMPLOYEES but not enough hours for any benefits, WALMART'S BENEFITS ARE GOV. ASSISTANCE!!! Wal-Mart is what is wrong with this country, Wal-Mart now has 15 full time lobbyist in dc lobbying for sales tax on the internet!!! NOW THEY WANT TWINKIES!!! ( sounds right more scap to sell in there crap store )
>>>>>>>>>>WAL_MART AND QUALITY.............OXYMORON<<<<<<<<<<<
they have killed all the little towns and mom and pop stores all over this country ,
WAKE UP PEOPLE SHOP LOCAL AND STOP WAL-MART!!!!!!!!!!!!!!!!!
I thought Ho-Hos..=..Chinkies was damn funny.
BTW....You can eat them cupcakes from the bottom, not as messy as trying to peel the top off...
All you have to do.....Is turn them upside down....But they don't come with instructions.
Sorry just couldn't help myself...Ho,ho, ho,ho...
I do have to agree with Michael Desentis??(something)...Sorry Mike.
I'm always amazed about the people that RAG on UNIONS...Probably really know the least.
I'm not going to get into their Accomplishments, Someone listed them well...
When all the Unions are gone...And every State is a Right to Work State, then you will be living the dream....And all will be fools and owe the Company Store....Mark it now.!!!
I am just assuming you all embrace wanton Capitalism....And Dictatorships too.
The Article is about Twinkies and WalMart....Did I see/miss something about Obama...
Or do only Morons read someting into The Twinkie deal......?
Liberal writing...probably by an Obama supporter. "Sadly, the $1.8 million that the bankruptcy court approved as retention bonuses for top executives will be paid no matter what"
Why is it sad? Have to have executives to liquate the company the unions destroyed. Just because men/women in running the company went to college, did well and rose up the ranks, should get what they earn. Those that don't try and rely on union bosses to tell them what they will get have to reap what they sow.
Michigan got it right and they are on the path to being a right to work state. Union bloodsuckers do not have much life left.
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Like rival Wal-Mart, it's pointing the finger elsewhere for its problems while other retailers are coping just fine.
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