Have no fear, the Twinkie will survive

Even though Hostess is going into bankruptcy, a line of suitors is interested in grabbing some of its brands. And the Twinkie is one of the hottest ones.

By Kim Peterson Nov 23, 2012 3:36PM
Cheer up, Twinkies fans. The famous yellow snack could probably survive a nuclear attack, so making it through bankruptcy court is a cakewalk.

The phones at Hostess are ringing off the hook as companies line up to pursue the 30 brands that are for sale, now that the final mediation session between the company and its striking employees has failed.
 
Hostess has received "a flood of inquiries" from interested buyers, attorney Heather Lennox told a bankruptcy judge in court this week, according to The Wall Street Journal.
Unfortunately, all 18,500 workers will lose their jobs at a company that should have been managed better. Hostess has been in bankruptcy before, and emerged a few years ago loaded up with debt from its private equity backers. The company was so underwater, in fact, that it couldn't buy new equipment, The New York Times reports. Hostess had more than $860 million in debt earlier this year.

Hostess is unfairly pushing all the blame for its troubles on the unions. Still, the unions do bear some responsibility here. High labor costs doomed the company; employees had formed into 12 different unions by the time the end came.Credit: Philip A. Dwyer/Bellingham Herald/MCT via Getty Images
Caption: Andy Wagar loads Twinkies, Ho-Hos and cupcakes into a van outside the Wonder Bakery Thrift Shop in Bellingham, Washington, on Friday, November 16, 2012

At any rate, Hostess is keeping a "skeleton staff" of 3,200 people, The Journal reports. It's trying to find buyers for 30 brands and 36 factories, and from the way the suitors are lining up, it sounds like Hostess won't have a problem with some of those brands.

"We therefore think there could be very healthy competition," Lennox told the court. Hostess may start auctioning some of its assets soon.

Hostess also plans to award bonuses to the officers and managers that helped run the company into the ground. The company is seeking $1.75 million to distribute to 19 executives for a job well done.

Some potential buyers include international companies eager for a piece of the U.S. bakery business as well as big pastry names already familiar to Americans. Flowers Foods (FLO), which makes Nature's Own bread, has been mentioned as a buyer along with Groupo Bimbo, a Mexican company that also owns the Entenmann's pastry line.

So whoever made the single bid for a $5,000 Twinkie sold on eBay, you may have a great story to tell but you probably won't have one of the last Twinkies ever made. They'll be back.

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279Comments
Nov 26, 2012 1:49PM
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Union greed + executive incompetence = Hostess
Nov 26, 2012 1:46PM
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"Hostess also plans to award bonuses to the officers and managers that helped run the company into the ground. The company is seeking $1.75 million to distribute to 19 executives for a job well done."

 

 

You've GOT to be kidding me....

Nov 26, 2012 1:17PM
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"Hostess is unfairly pushing all the blame for its troubles on the unions."  


The snack giant endured $52 million in workers' comp claims in 2011, according to its bankruptcy filing this January. Hostess's 372 collective-bargaining agreements required the company to maintain 80 different health and benefit plans, 40 pension plans and mandated a $31 million increase in wages and health care and other benefits for 2012.


Union work rules usually required cake and bread products to be delivered to a single retail location using two separate trucks. Drivers weren't allowed to load their own vehicles, and the workers who loaded bread weren't allowed to load cake. On most delivery routes, another "pull up" employee moved products from back rooms to shelves.


Unfair to blame the unions indeed.

Nov 26, 2012 1:16PM
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Unions brought you the weekend and 8 hour workdays.    I'll bet you'd squeal like a pig if employers took those (and lots of other workers' rights) away.   

 

Yeah, buddy:  I yearn for the days of sweatshops and fire trap factories that worked children and women to death in the U.S.A.  

 

"Those who cannot remember  the past are doomed to repeat it"   -  Santayana 

Nov 26, 2012 1:02PM
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Apparently this story by Kim Peterson will continue to survive well into the next millenia,because you see, stories like this are more important than the fact that are world is on the verge of WWIII.

Nov 26, 2012 1:02PM
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Blaming the unions and paying the management bonuses ?   Which of those scenarios seems to be the most f*cked-up  ?
Nov 26, 2012 12:59PM
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The workers already took a 8% cut in pay and pensions were frozen.  Then they were asked to take another 8% after that with the upper management getting bonuses/raises.  Now if your boss asked you to take a 16% pay cut and he got a raise....what would you do????

 

Then Hostess still has the nerve to try and give $1.75 million to the people who mismanaged it in the first place.

 

The employees should be commended for having the backbone to stand up to a big corporation and say enough is enough.

Nov 26, 2012 12:56PM
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I haven't had a Twinkie since grade school!!!  I graduated gs in 1973, & became diabetic in 1975, so...
Nov 26, 2012 12:35PM
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Author states company to award bonuses to managers that helped run company in ground. Where is the proof of this? You just made a statement without evidence. That's called an opinion or simply misleading.  The video doesn't back up this claim. If you're going to make statement like this at least have some credible source to back it up.
Nov 26, 2012 12:12PM
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I'm not concerned about the potential loss of Twinkies.  It's the fruit pies that I would miss.... :>)
Nov 26, 2012 12:10PM
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"The company is seeking $1.75 million to distribute to 19 executives for a job well done."

 

What a joke, your company goes bankrupt, so here is your bonus for "a job well done".

Most people who are executives of companies are narcissistic nerds.

Nov 26, 2012 12:09PM
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"Whoever it was that said..." Really aren't too observant are you DeeDee...So who's the MORON ??

 

I'm quite glad I never worked around you...But I do remember some similiar..They were crybabies.

And always the ones abusing the Company and the Union the most...Yeah I remember..

We wanted to fire you, and the Union wanted rid of you....You threatend everyone.

Even talked about going to the NLRB..

 

Do you have any idea what caused the last Depression or Our deep Recession...?

Yup, didn't think so.........

Nov 26, 2012 11:57AM
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Only thing noticeable to me about Twinkies over the years, was they got smaller by about 25-30%..

 

Never cared much for the Banana Cream...yukky.

 

Over 60+ years and the only thing, that I still like a lot of.....except maybe mashed taters.

 

I've got nine(9) left now....Oh woe is me....

Nov 26, 2012 11:47AM
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Whoever it was that said the union was a main reason Hostess is going out of business is so right.  Americans in general want to make outrageous  wages and still to be able to buy whatever they need at rock bottom prices.  IT DOESN'T WORK LIKE THAT YOU UNION MORONS. I worked at a few companies that were held captive by unions. Union people act like the f*cking world revolves around them. Believe me unions will be the main cause of the next depression, and it's coming people.

Nov 26, 2012 11:34AM
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Bernanke is meeting with Paulson, Geitner and Obama in a closed door all night session until they hammer out an $80 billion loan/grant program to save "to big to fail" Hostess. Reporters allegedly overheard one phrase passionately screamed from inside the room as the door opened when bernanke exited for the head; "give me twinkies or give me death!"
Nov 26, 2012 11:27AM
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bonus for someone that helped run the company in the ground? should be illegal ...its definately Immoral!
Nov 26, 2012 11:27AM
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So why doesn't the government bail out  Hostess? They helped the auto industry???????

 

Nov 26, 2012 11:21AM
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I guess this company wasn't to be rescued because it isn't on Michelle Obama's healthy school lunch program.

 

But at least I can look forward to still getting a 'deep fried' twinkie in the future ! YUM!

Nov 26, 2012 11:14AM
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Twinkies were actually pretty good about 30 years ago, now not so much. Unless they go back to the old way of making them I really don't care. Maybe even with the banana cream.
Nov 26, 2012 11:09AM
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I GUESS BAIN WILL NOT BID.THEY CAN NOT SEND THE JOBS TO CHINA.

 

PEOPLE ARE ALWAYS QUICK TO BLAME THE UNIONS. HOW SAD. THE TRUTH IS MANAGEMENT MADE BAD DECISSIONS. BLAMED THE UNIONS. AND NOW THE MANAGEMENT WANTS A BONUS.

IT IS BAD ENOUGH THEY ARE STEALING MONEY OUT OF THE HOSTESS TREASURY AND WANT TO GIVE OUT $1.75 MILLION TO THE OTHER CROOKS. I HOPE THE MAN PUT IN CHARGE GOES TO THE JUDGE AND GETS BACK THE RAISE THAT WAS GIVEN TO THE HEAD OF THE COMPANY. HE WENT FROM $750K TO $2.25 MILLION.TREAT HIM LIKE HE TREATED HIS WORKERS.TAKE AWAY HIS $750K AND GIVE HIM $100K.ALSO TAKE AWAY HIS GOLDEN PARACHUTE AND ALL BENEFITS.

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