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 4:57PM
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I'm sick of hearing about that awful tasting Twinkie. It's very clear that anybody can make this sugar filled dessert by  the numerous  companies  that are trying to buy it.  Junk food makes big profits thats why the US is considered the fattest nation of people in the world. What is sad are the people who are losing their jobs due to bad management.
Nov 23, 2012 4:46PM
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No Twinkies? Does that mean the crime rate will go down? And let little Timmy scream all he wants to. Obviously he's never had to go hungry!
Nov 23, 2012 4:45PM
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It's difficult to come up with any reason to reward the "dingbats" who ran Hostess into the ground due to poor management have the guts to ask for a bonus. The workers are the big loosers in this case. Hopefully, most of the workers will remain working with the  new owners.
Nov 23, 2012 4:41PM
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They may be Twinkies, but they will not be Hostess Twinkies.  This is more about the slow death of American industry as anything else.  Whether you believe Corporate or Union greed killed this company, it makes no difference.  Hostess is still gone. 
Nov 23, 2012 4:40PM
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Being a former union employee I can understand the problem. Unions were good in their day to protect the worker. The long of it is the unions started to take advantage of the power. More, more , more. Ford motors is a prime example of milking the system. So is there enough profit and wages to go around? The exec's grab all they can and the workers squeeze the employer for their share. No happy medium to be found on either side. So I think that management has no one to blame but themselves. Just imagine--18,000 more people out of work. The executives will still get their share. Will the management and employee's seek a happy medium. I think not. God help us all!!!!
Nov 23, 2012 4:39PM
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Boo hoo, boo hoo union members... and they say that the US congress can't compromise. I can see it now, buyers will cherry pick the most modern facilities/equipment and relocate somewhere else. The abandoned facilities will decay, be turned into condos (depending on location) or just torn down.

 

I visited my hometown in WNY in August and drove by the old Bethlehem and Lackawanna steel mill locations. 98% of it is gone, gone, gone. The positive side of it is that the foundry stink is gone and now the homes in Lackawanna have different roof colors rather than the same drad dull rust color.  In addition miles of lake front has been opened up for residential developement and boat harbors + giant windmills.

Nov 23, 2012 4:34PM
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you azzwipes in unions are your own worst enemy, and I'm too damn glad you lost your jobs, now your gonna pay, BIG TME for your socialist bullshiiiiit agenda, and what've you gained???? absolutely nothing good for you, way to go!
Nov 23, 2012 4:31PM
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All unions need to just go away. Unions, frivolous lawsuits, and government regulations are why everyting costs so damn much. 
Nov 23, 2012 4:28PM
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again the unions destroy another company especially the teamster[one of the most corrupt] , when they learn, its a global market, I wouldn't be surprised if it was a chinese company!!!!!
Nov 23, 2012 4:24PM
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The Obese Association of America Is Not Going To Like This!   What will Honey Boo Blob Eat ??? Spoons Full Of SUGAR I Guess., The Value of Her Trash Art Just Hit The  ROOF.!
Nov 23, 2012 4:21PM
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Way to go! Award a bunch of slimeball executives for running the company ship aground. They belong in the soup kitchen lines along side with everyone else they shafted.
Nov 23, 2012 4:17PM
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GOD IS NOT GOING TO LIKE not HAVING TWINKEES.   It truely is the end of days...No Twinkees  , That is the Crime of the Century.    My Little Timmy won't stop Screaming for His Twinkees.   Now ;that Slut; Little Debbie is Taking  Over.   Her Twinkee's  SUCK !
Nov 23, 2012 4:14PM
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good for the executives and their bonuses- what about all the employees losing their jobs because of them!!!
Nov 23, 2012 4:14PM
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Go on strike lose your job. go on extended unemployment benefits, get help from the Union and the government. Why mediate or go back to work
Nov 23, 2012 4:14PM
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Another victim of criminal union bosses.
Nov 23, 2012 4:02PM
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Bye Bye Hostess. My boycott started last week. Screw the worker, screw you. Good riddance.
Nov 23, 2012 4:01PM
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this is like cutting your nose off to spite your face.  killed the company and end up jobless.
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I think the person who bid on that $5000 did not intend to pay.  People hAve been bidding on the super expensive twinkie auctions just for spite.
Nov 23, 2012 3:53PM
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12 different unions formed? I guess each union leader wasn't getting rich fast enough so they broke off to form their own union and all 12 squeezed Hostess to the breaking point.  
Let the company fold and put all those union workers out of the job.  
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