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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Nov 26, 2012 4:26PM
 It wasnt the bad managment it was the greedy unions that made hostess go under, hostess asked the workers to take a pay cut so they could keep thier jobs and keep the cpompany in business the union said no and told the employees to go on strike , the company had no choice but to close its doors. just make sure the blame goes to the right place
Nov 26, 2012 4:10PM
Wonder if the arrogant union boss has kids that like Twinkies.
Nov 26, 2012 4:08PM
Non union idiots,Unions got all of you the benifits you get today,as the unions go away one by one,you all will lose your benifits one by one! Do you think an employer gives you benifits because they are concerned about you? They gave them to match what unions were giving to stop unions from forming in their company! When the unions go, so do your sick days,vacation,health insurance, 401k, ect! Glad I am retired!
Nov 26, 2012 3:50PM
These golden, majestic logs of joy must survive. 
Nov 26, 2012 3:43PM

POTER.......Just curious where you would get that kind of information...


And would it be safe to guess, that could be site specific ???


TELL US, POTER; Inquiring minds want TO KNOW.

Nov 26, 2012 3:21PM
Funny how the executives need millions of dollars in bonuses while employees making $10.40 are expected to take another paycut. I know a lady that has worked for them for 14 years driving from store to store filling shelves no matter the weather. Stocking bread sounds easier than it is. It is pour management not the union that took the company down. How many of you could be making $10.40 and now take a cut in pay. The best workers move on leaving the company with employees that don't care. If you end up with enough employees that don't care then you will go bankrupt.
Nov 26, 2012 3:06PM
America is quickly becoming a nation that makes nothing and tries to buy everything. Wonder how long this can go on? From the looks of the national debt, not much longer.
Nov 26, 2012 3:05PM
Twinkies are crap with over twenty ingredients and chemicals.  If you still need a junk food fix, go for Little Debbie sponge cakes - they're exactly the same.
Nov 26, 2012 3:04PM

Union labor killed the Hostess Kid - way to go

Nov 26, 2012 3:03PM
Typical of a company already bankrupt is to award top management and dump on employees who probably gave them their money's worth. Could karma have a role to play in this? Heck yeah. America knows the company will move to China or Mexico where labor is cheap and retirement is nil, but the Twinkies will be just as good made with rice or cacti roots.
Nov 26, 2012 2:54PM

"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".


Was Bain involved?

Nov 26, 2012 2:41PM
What these unionized employees failed to understand is that if they were actively on strike when the company officially closed then they will be unable to collect un-employment benefits. I wonder if the all-so-powerful Teamser union is going to financially support all these striking emplyees....I doubt it so I'm sure they will have a Christmas to remember.
Nov 26, 2012 2:34PM
LMAO!  The unions got "tough" so the company said "screw you!"  Yet another example of the bloodsucking, leech unions destroying their host.
Nov 26, 2012 2:32PM
They would not have needed a pay cut if the Unions were not there!!! Union workers think that the Unions are there for them all the Unions are worried about is getting there money, saving there special intrests, and if they can work out a deal for the workers with a pay increase (which is less than 3%) The stupid Union workers think they made out!! Little do they realize that there so called 3% raise is going to be wiped out by higher union dues because the Unions say because we did that we need more money. Wake up people go too school and learn simple math and you will see the light!!!!!!!!!
Nov 26, 2012 2:25PM

For all those people bashing unions....would you take a 16% pay cut and freeze your pensions while your bosses took a raise??? (They already took 8% and company wanted 8% more).  


The hostess employees said NO and they had the courage to to stick to their guns.  Would you have the same courage?



Nov 26, 2012 2:19PM
Unions and the democrats are going to RUIN this country!!!! I hope this is a wake up call to people that the Unions will not be tolerated any longer. Companies will just close down and sell off to reopen under a differant name with no union workers. Or the companies will go offshore or Canada or Mexico only for those jobs never to come back to America EVER!!!!! This is just what people voted for and thats just what they are getting!!! Its too bad millions of people will have to suffer in order to get it threw there heads.
Nov 26, 2012 2:15PM
So in short, Twinkies will be filled with spooge in some foriegn company, and the idiots residing in the USA will suck them down like nothing has changed. Just like electronics, autos,clothing,and almost any other thing one can imagine. Whistling past the graveyard is finally catching up with the ignorant. Your bliss is about to end. Fools!
Nov 26, 2012 2:14PM
Inflated labor costs is a big factor in jobs leaving the US. Want to blame someone for jobs going overseas? Look to the unions first.
Nov 26, 2012 2:09PM
I suspect the unions involved will have no interest in negotiating their claims against the Hostess company, for pension, retirement and benefits packages, so there might not be any companies interested in taking on these costs to buy the product brands. It all depends on how the bankruptcy judge rules.
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