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 23, 2012 7:05PM
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i found the last twinkie 2 pack in QT yesterday :)
Nov 23, 2012 7:04PM
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Everyone over 12 yrs. old know that Twinkies suck.....powder fluffed sugar wrapped in a soft sponge.......Maybe the Union will feed the 18,500 fools those delicious treats with designated foodstamps.....and the Walmart commie union idiots can get another job making $2.00 less per hour......

 

I doubt they will, they want to get on the Obama Gravy Train.

Nov 23, 2012 7:02PM
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American businesses brought the unions in to existence.  Without them, the American business man and the corporation they work for will screw the worker as much as possible.  What's really funny is these people that find fault with the unions because they think they are getting paid what they are worth while the CEOs of the companies they work live like kings off the sweat of the workers.  I walked away from an $85,000 job because I was being underpaid by approx $25K.   I have to admit that I had planned on retiring at 60 anyways so I just quit a couple years earlier.   But the point, is that while the CEO's pay went up by millions of dollars every year, I was given a miserly couple thousand.  For two decades, I watched my buying power dwindle while the CEOs across the nation saw their pay skyrocket.   Without a union, all you can do is quit if you are dissatisfied with your job.  You have few other choices but most people can't afford to quit.  I could so I did.
Nov 23, 2012 6:58PM
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I just hope that Mexican company doesn't buy Hostess. I don't want salsa in the middle of my Twinkies. Then they'll be folding the SuzyQ's to look like tacos. Then they'll start "creaming" the cocaine and putting it inside the cupcakes. I will never buy "Bimbo" brand Twinkies.
Nov 23, 2012 6:58PM
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Just amazing! Minimuim wage workers and those with dead end jobs hate unions because they watch out for the members to make sure they get a fair deal. When was the last time your boss came to you and asked you to take a pay cut so he could get a 300% raise? Would you agree to it? I'll bet not then on the other hand maybe you would stupidity knows no bounds.
Nov 23, 2012 6:55PM
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sounds like are goverment doesnt it,where everything is personal
Nov 23, 2012 6:54PM
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Seems to me it's the fault of both the union and managment. Greed on both sides killed this company.
Nov 23, 2012 6:45PM
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Looks like the employees are the real Ho-Ho's, Twinkies and Ding DONGS...... 
Nov 23, 2012 6:21PM
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This was not a union issue but a management issue. The company was in trouble and still they milked it. This company was Romneyfied as in Bain acquired. Anyone that puts the blame squarely on the union is just as dim as the management. 
Nov 23, 2012 6:20PM
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Great News, my wife will get some sleep tonight.....she is down to her last pack!
Nov 23, 2012 6:13PM
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It has become quite apparent on here, that MOST know very little about Unions nor Venture/Vulture

Capital organizations...Sad.   And although"some unions" may have problems...They have certainly not "outlived themselves."...And you will realize that in 10-15 years...IMO

We have been on both sides of the fence, but never straddled....There will be regrets someday.

 

And for any "Foodies" on board....I have 1 box left, I should have had her buy more, before the final edict...Any takers?...From my cold dead hands....

BTW...DOW back through 13K today and the RUT2K over 800....Wooohooo!!

Nov 23, 2012 6:11PM
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this is what happens in the REAL WORLD: a bunch of union thugs (see steel industry) hold out for more money than they are worth and ruin a company. the profitable parts are bought and the union contracts are shredded. the white collar workers move onto similar paying jobs eventually, and the union thugs move onto a greeter job @ walmart or a barstool. enjoy those blue aprons!
Nov 23, 2012 6:09PM
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Why are the big guys getting bonuses. Maybe that money should go to the unemployed. I think that's a great idea.

 

Nov 23, 2012 6:07PM
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well hell,  im happy now i can  get out of my depression, and  open thelast 5 boxes of twinkies and hostes cup cakes i bought before all this crap happened,time to break out another bottle of insulin lol sugar overload is about to happen, damn the doctors and diabeties,, ful sugar  rush a head!
Nov 23, 2012 6:03PM
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Why is it that the company "could have been managerd better?"  That is BS.  When you have a greedy union whose members want to be paid far in excess of their true worth, and when they are constanly extorting the business, then management is not the answer.  Close it down and see where the morons can find new jobs!  Good riddance!!
Nov 23, 2012 5:54PM
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Who's walkin' away with all the money? Manager's that drove Hostess into bankruptcy! Those Union members took a 30% pay cut while the managers stopped funding the retirement fund, just to keep their jobs. Hostess managers (Rayburn) borrowed as much money as they could get their hands on to give themselves 300% raises and bonuses. Vulture capitalism destroys jobs and lives, but I think Romney called it  "creative destruction", sounds like socio-pathic not business. Maybe a psychiatrist could explain it better...
Nov 23, 2012 5:53PM
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Why is everyone and the union employees ignoring the fact that the union exec's representing  the union members during the negotiations will retain their "fat-cat" status and  "over-sized" salaries while 18,500 members wait in the unemployment lines...Never seen a union boss agree to salary concessions  for their own compensation when they're willing to negotiate concessions for their members.....
Nov 23, 2012 5:47PM
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More like the company bosses sucked all the money out of the company, to include a huge raise for Greg Rayburn as the ship was going down. Bear in mind that this company was own by a sister company of Bain Investments who are known to put companies out of busness to fill their own pckets. What could you morons know other than what the meadia spoon feeds you?
Nov 23, 2012 5:45PM
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I hope someone buys the company.  It's ashame that after 80+years,this has to happpen.

 

I know that Americans are eating healthier,but this is a food staple for all age groups.

 

PLEASE bring it back!!!!!

Nov 23, 2012 5:41PM
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BS, the unions made all kinds of concessions for Hostess, it was the private equity firm that loaded the company up with debt, pulled all the cash out, and didn't update the equipment and trucks that killed Hostess.
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