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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289Comments
Nov 29, 2012 7:24PM
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What about Susie Qs and their yummy cinnamon sweet rolls?
Nov 28, 2012 9:15PM
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Having worked with unions for many years all I can tell you is the got what they deserved.  At our union corporate offices the secretaries make $90,000 a year compared to the worker secretaries that make less than $45,000.  The reason why they did not want to accept the compromise is so the unions couldn't justify the large union dues to line their pockets and outrageous salaries.  Unions aren't needed anymore in the current age but are a shield used for the inept and incompetent to hide behind to save their job.  The parasitic unions that destroy the companies and workers need to go!
Nov 28, 2012 12:38PM
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I can't imagine giving the ex employees any money. They are the ones that decided to strike and drive the doors closed, permanently.  Maybe if they hadn't tried to strong arm the company and gone about pay raises in a rational way they would all be employed still. The company was solvent and it was impart due to the people running the company. if the money goes any where it should be to people that helped not hurt the day to day operations and not the thugs.
Nov 28, 2012 10:50AM
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The CEO tripled his salary in the years before bankruptcy, many execs got raises up to 80%.

 

So, those of you who serve the Koch brothers and adore Rush, tell me again about the greedy union workers.

Nov 26, 2012 8:21PM
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"The company is seeking $1.75 million to distribute to 19 executives for a job well done.", for running a popular well know company into the ground.  Sounds like American greed and stupidity to me!!  And yes I do agree that the Unions did help kill the company.  But there is plenty of blame to go around.

Ah well, I just hope the powdered donuts and cup cakes survive..  Couldn't care less about the twinkies!

Nov 26, 2012 7:56PM
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Union idiots...Hold out for outrageous money  and lose your jobs...Stupid union mentality.  Try starting your own business ...Hell they wouldnt have the guts or the brains...but let their fat cat union bosses rake in the cash while they tell their union members to vote to run another well needed company of the U.S. into the ground...nice work idiots.   Wish all the unions were run out of the U.S..  They are ruining our economy more than anything else!!!!!!
Nov 26, 2012 7:26PM
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you can tell a lot of the comments come from people who have never been on the ownership side of a company. when i opened my business i did not do it so that i could practice my profession, i did it to make money. in your business plan you set amounts for what you plan on paying out against what you take in, and move forward from there. if the workers want so much of the proverbial pie, let them buy their own business and assume the hazards of losing it all if it fails. the workers want all kinds of promises and guarantess but want the owner to assume all the risks. when i went out of business, none of my employees shared in my losses, and i did not expect them to. thats the fun of it, the excitement of not knowing if you will succeed.
Nov 26, 2012 7:12PM
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I think twinkies look like giant penis's. That racist, cause there all white. We need some black twinkies....only problem is the package would nearly double in size. 
Nov 26, 2012 7:10PM
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What are fat chicks going to eat no while there watching their soaps and searching for the last frito under the coach cushion, This company makes garbage and its time it dies. Who knows, maybe we'll start seeing real food show up on store shelves.
Nov 26, 2012 6:54PM
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I can feel Oprah and Rosie O donnel jumping up and down with joy
Nov 26, 2012 6:46PM
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Yes, I am sure those greedy union Twinkie workers made so much money that they lived in mansions and drove Bentleys to work!!
Nov 26, 2012 6:44PM
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Sounds exactly what Alan Recher and his managers did at Five Star Food Service to their long term employees that helped build the company.
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America needs to get rid of all dam unions, this company had to deal with 19 unions thats crazy. The idiots now don't have a job period and they are stupid if they think they'll find a new job. Soon you fools will be trying to sell everything you have gained while working, now you fools will have to sell all your toys to live,unemployment won't last.
Nov 26, 2012 6:27PM
Nov 26, 2012 6:27PM
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I love hostess, snowballs especially.   Suzie Q's are good also.   I am glad they will not disapear.
Nov 26, 2012 6:13PM
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It doesn't bother me either way.  If Twinkies survives, okay.  If they don't survive, okay.  I don't care if Washington survives.  Our country is doomed.  the sooner China forecloses, the better.  Then Texas won't have to secede.  How long will it be before Americans refuse to work and go into the streets?  I don't want to work anymore.  The reason is the guvymint takes too much of what I make.  I no longer want to support Washington.
Nov 26, 2012 6:06PM
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Why is it there is  no Obama bailout Hostess.

 

18,500 jobs lost because why, elections over.

 

Nov 26, 2012 6:04PM
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The union members are idiots.  You don't see the union management unemployed do you?  Example how unions drove the company into bankrupcy, must have Twinkie truck to haul Twinkies...rediculous.  Must have seperate trucks to haul seperate brand product from the same bakery to the same distributor.  Oh yes the poor unions, glad they are all unemployed & hope they never get a job over $7.50 hr. and no benefits or retirement.  The union fools made their bed, now let them sleep in it.  And as for habenaro711 don't try to blame Bain Capital or venture capital companies for the Hostess outcome.  It was the union striking period.  Companies can always be managed better, but the best solution seems to be send the work overseas and not deal with the idiot, out of control unions .  An example is Apple Inc. and why deal with unions.   It's time to bust the socalist unions who take, take, take, and work less, and less, and less, and want more, and more, and more. 
Nov 26, 2012 4:33PM
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What  about "Little Debbie"  taking over the company, has the board of directors considered selling to Little Debbie the other  twinkie company.
Nov 26, 2012 4:26PM
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Its too bad they couldn't work this out.  I hate to see that many people put out of work that did their jobs to the best of their abilities.  Good Luck to all of them.
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