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 23, 2012 8:56PM
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America needs unions like it needs more debt. The day of unions usefulness has come and gone. Now they have bullied the government into being on their side. We will not have much manufacturing return to the USA until the unions are gone, and the government is downsized drastically. These union people must be "dumber than a post", to think they can extort money from a nearly bankrupt company.
Nov 23, 2012 8:45PM
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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." Call me crazy, are you serious? This is comical!
Nov 23, 2012 8:16PM
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Twinkies haven't tasted the same as they were in the 1970's and 1980's.

Like everything, the source of the ingrediates comes from a different supplier and Bingo

all together with other changes makes it not as good as it was in the yester years.

 

Twinkies and Pepsi was the sugar craving for me. But I gave that up long ago since my body

metabolism decreased with age and I didn't need the intake of high calories anymore.

 

Hostess has now fallen in line with Dolly Madison another of it's own products.

I remember those commercials appeared during the Charlie Brown seasonal shows.

 

We live in a world that things don't last forever.

 

I lived in Fulton, New York where we had a NESTLE's Chocolate Factory .... it's gone and closed down for better than 10 years now. Someday HERSEY's will be next.

Nov 23, 2012 8:04PM
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I am one of those 'Communist lefty pinkos' but even I think the union people are out of their minds. What could they possibly be thinking? Oh....that's the problem, they are not thinking at all.
Nov 23, 2012 7:59PM
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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."

the union are the bad guys though
Nov 23, 2012 7:58PM
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yea...blame the unions, but the executives who ran the company into the ground get a pass? you ignorant idiots don't know most of the specific details about what actually happened with hostess anyways. you just spew your venomous anti union beliefs
Nov 23, 2012 7:57PM
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Yeah it was a Venture/Vulture Capital Management and Union Fiasco.
Nov 23, 2012 7:57PM
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Why isn't Obama trying to freakin' bail out Hostess??? I'd rather them get my money than the stupid, careless bank CEO's that were mostly responsible for the decaying economy.

Nov 23, 2012 7:56PM
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Well Crazy...I wrote about 7-9 paragraphs about Unions hi/lows and Unbridled Capitalism and our wishy/washy Government on the subject over an 80-90yr. period of time..Post got lost in La-la land and I'm not going to recoup it so...You guys just keep believing what you want about Unions until it is too late...I'm living to see it now and what is happening....It is a sad to watch.
Nov 23, 2012 7:52PM
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The 18,500 workers should all join and forma single union and throw the other Unions out on their ruckus
Nov 23, 2012 7:45PM
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I dont think people have been paying attention. Hostess has been in trouble for years due to bad decisions by there leaders.
Nov 23, 2012 7:31PM
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 Dont put all the blame on the unions the company did some of this themselves. "The company is seeking $1.75 million to distribute to 19 executives for a job well done." If you where that bad off would you give this kind of bonus out.
Nov 23, 2012 7:13PM
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the highest price paid on ebay was around 17 to 20 dollars a box

no one but someone fooling around would have bought any twinkie for 5gs

Nov 23, 2012 7:10PM
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The officers should not get bonuses nor the employees should get unemployment they walked off the job in my opinion they quit.

Nov 23, 2012 7:06PM
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''News Flash'' Iran has just announced it has agreed to purchase the rights to make twinkies. when asked why they did this they replied....''Because we have a large supply of Yellow Cake!!!''

Nov 23, 2012 7:05PM
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thanks mydrano.....go take your 2 hour break
Nov 23, 2012 7:05PM
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i found the last twinkie 2 pack in QT yesterday :)
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.
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