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 5:31PM
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Why should any executives get a bonus?  They mismanaged the company to bankruptcy and should be out on their asses like their employees with nothing! This is just like the big bankers getting bonuses for mismanagement and dragging the nation into the largest recession since the great depression!!
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.  
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 4:01PM
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this is like cutting your nose off to spite your face.  killed the company and end up jobless.
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 4:40PM
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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 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 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 4:14PM
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Another victim of criminal union bosses.
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 4:34PM
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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 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 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 5:45PM
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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 5:24PM
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I wonder why our fearless leader did not help this company out as he did all the other ones?  Perhaps Hostess didn't give the quota required like Government Motors and the so-called "Green Company's" did?
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 4:28PM
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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 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 5:47PM
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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 4:14PM
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good for the executives and their bonuses- what about all the employees losing their jobs because of them!!!
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