Time to start stockpiling Twinkies?
PrivCo, a company that researches privately-held firms, estimates that at the end of 2011, Hostess had $40.3 million in cash and $1.43 billion in liabilities, including $303 million in debt that came due this year. PrivCo CEO Sam Hamadeh calls these figures a “recipe for a disaster in the making.”
Hamadeh says the company’s “onerous union contracts and its massively unfunded pension obligations” are a big part of the problem. “As of January 2012, Hostess’ pension fund was approximately $2 billion underfunded,” he says.
Hostess is trying to shed some of these obligations via bankruptcy proceedings, but management is finding out that unionized rank-and-file workers aren’t on board with these concessions and want the company to uphold its collective bargaining agreements made in better times. The rising cost of ingredients like flour and sugar also put a squeeze on Hostess’s bottom line.
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Hrmmm wonder what good the union is when it sucks the host dry? Then what happens to all the workers that the union “claims are so important” when they no long have jobs?
watertown on November 15, 2012 at 1:40 PM
The only thing to eat after a nuclear war will be cockroaches.
BadgerHawk on November 15, 2012 at 1:41 PM
I would say so. The company is expected to liquidate today if the strikers don’t return: http://www.kwch.com/business/kwch-hostess-ceo-gives-striking-workers-thursday-deadline-20121114,0,2860295.story
Doomberg on November 15, 2012 at 1:42 PM
Which reminds me. My union has contract negotiations the next few months because our contract is up at the end of February…Of course talk about a strike again …. like they did not learn 10 years ago when they were left out side for 11 and a half months… only to take what was originally offered. I of course… well we will leave it at that
watertown on November 15, 2012 at 1:42 PM
Money that can’t be paid, won’t be paid.
Too bad Obama doesn’t need to get re-elected anymore or he might have been able to do something for them.
BadgerHawk on November 15, 2012 at 1:43 PM
2 billion?! Goodbye, Hostess. Unless Moochelle is secretly a big fan of Twinkies and Ding Dongs. Then maybe a bailout would be forthcoming.
Doughboy on November 15, 2012 at 1:43 PM
What is it with liberals (labor unions in this case) and not getting the concept that sometimes there just isn’t enough money for them to get what they want? If they hold their ground, they’re all losing their jobs. Talk about cutting off your nose to spite your face.
LukeinNE on November 15, 2012 at 1:44 PM
Well I do recall reading some years ago that twinkies have a shelf life of a thousand years, or something like that?
L
letget on November 15, 2012 at 1:45 PM
Twinkies/pry them from my cold dead hands, or something.
Paul-Cincy on November 15, 2012 at 1:46 PM
Let. It. Burn.
Little Debbie is cheaper and I believe they run a non-union shop.
JPeterman on November 15, 2012 at 1:47 PM
Well, they will get unemployment for 90+ weeks, a free Obamaphone, perhaps welfare with no work requirement, food stamps, maybe even a kiss from dear leader.
BobK on November 15, 2012 at 1:48 PM
I’d say she is. She married one.
Flange on November 15, 2012 at 1:48 PM
I would, but the ammo and booze is taking up too much room already.
Mark1971 on November 15, 2012 at 1:48 PM
Thread winner.
JohnTant on November 15, 2012 at 1:50 PM
These unions are so short sighted. They’re going to stike and cause the entire workforce of 18,000 people to lose their jobs. What’s worse, taking a bit of a pay cut or losing your job because the company shut down? I guess if you’re a union boss you’d rather have your members out of work than take an 8% pay cut. Real men of genius….
dczombie on November 15, 2012 at 1:51 PM
Close it down.
As a kid, I was not allowed to eat that stuff ( Ma was a home econ. teacher) and never felt the desire for it as an adult.
No skin off my back.
Jabberwock on November 15, 2012 at 1:52 PM
They’re horrible for you, but damn they taste good. Besides, if we took everything that was unhealthy for us off of the market, we’d be a very miserable people.
Doughboy on November 15, 2012 at 1:56 PM
Just make them in China but write on the wrapper: designed in California. That is what American “success story” Apple does.
kunegetikos on November 15, 2012 at 1:56 PM
Good point.
Twinkies travel well.
Jabberwock on November 15, 2012 at 1:59 PM
Amusing to think about them closing shop and re-opening in a right-to-work state!
But really, Twinkies contribute to the obesity crisis. So it is best they go. Good riddance! /s
lucyvanpelt on November 15, 2012 at 1:59 PM
Finally…Survival preparations I can get excited about!
moo on November 15, 2012 at 2:00 PM
Next time they ring your bell, buy more cookies from the Girl Scouts.
Jabberwock on November 15, 2012 at 2:01 PM
Unions are trying to kill Twinkie the Kid!
LincolntheHun on November 15, 2012 at 2:04 PM
As an adult I no longer like the Hostess products I loved as a child, when I could eat a whole box of Ding Dongs in one day. However, I had some deep fried Twinkies in a nice little restaurant last year. It was off menu and recommended by the waiter. They were awesome! Seriously. Try some if you get the chance.
juliesa on November 15, 2012 at 2:06 PM
I haven’t gotten any Girl Scouts showing up at my door, but I did have some elementary school girls selling cookies to raise funds(I never bothered asking why) and I bought chocolate chip pecan cookie dough from them. Just doing my part to help the local community(and my tummy).
Doughboy on November 15, 2012 at 2:07 PM
I thought this was gonna be another Nanny State thread. You know, New York or Chicago banning Twinkies and Hohos…
aunursa on November 15, 2012 at 2:08 PM
Not to worry. The Twinkie brand will be one of the assets sold when Hostess goes into liquidation.
besser tot als rot on November 15, 2012 at 2:08 PM
I heard this morning on the news that if the company folds, its workers would NOT be eligible for unemployment because they were out on strike at the time. Is this true?
diditagain on November 15, 2012 at 2:15 PM
But if the government has $0 on hand and $16 Trillion in liabilities, that’s A-OK. Right, Dems? You know, ‘cuz we owe to ourselves.
Odysseus on November 15, 2012 at 2:16 PM
Too spongy and sweet to fail?
Odysseus on November 15, 2012 at 2:18 PM
Does anyone else find this possible Twinkie shortage AND the pending zombie apocalypse to be just a little too coincidental?
Droopy on November 15, 2012 at 2:18 PM
Take a look at the history of the US Steel industry. When a business dies because they refuse to give in to greedy unions, the unions consider that a great victory. Really.
slickwillie2001 on November 15, 2012 at 2:21 PM
Too big to fail. Government Twinkies. Appropriate. Anyone have figures showing how much welfare spending ends up buying Twinkies? Let’s eliminate the middleman!
slickwillie2001 on November 15, 2012 at 2:23 PM
Funny thing – the union is saying that Hostess can’t cut wages and benefits, because the economy is bad.
They don’t seem to understand that a bad economy means HOSTESS pays more for stuff, too.
But if they’d rather be unemployed than take a pay cut, then good for them.
hawksruleva on November 15, 2012 at 2:28 PM
Twinkie Bailout coming next?
JPeterman on November 15, 2012 at 2:33 PM
My understanding is that the Teamsters DID accept the company’s offer and that itis the bakers who are holding the line.
If they shut down and the Teamsters lose some jobs, those bakers better keep a low profile.
Jabberwock on November 15, 2012 at 2:35 PM
Throwing FLOTUS under the bus for the union ?
Jabberwock on November 15, 2012 at 2:36 PM
American Airlines maintenance crews and their union tried this not so long ago.
Regardless of what you think of AA’s management (and there are big question marks hanging over them), the majority of the maintenance staff are history and AA has joined the other major US airlines in having routine maintenance performed in…Mexico.
CorporatePiggy on November 15, 2012 at 2:39 PM
As a kid I loved Ho-hos. At least they have chocolate in them. I don’t suppose Michelle Obama likes Hohos. And she would want to make you feel bad for eating them. I hope someone throws a banana cream pie in her face, all rich and sugary and creamy. Sorry about the years of prison time they’ll get. Take one for the team?
Paul-Cincy on November 15, 2012 at 2:46 PM
First, HoHO’s are racist!!!
Second, I read the article earlier today and saw the union members quoted as saying “blah blah I dedicated 20 years of my life to the company and they are trying to cut my wage 8%.” They always think they have sacrificed so much by working for Company ABC for so long….
SHUT UP you union @$$$%%ies!! Devotion, sacrifice, giving up other things for the company – these are things you know nothing about. Company ABC provided you with an income for those 20 years. You think working the odd overtime hour id dedication? If you were actually devoted etc etc you would shut it and take the 8% pay cut so the business could survive. Instead, the true logical end of all unions will play out and they will kill the host.
I am so sick of unions and the blue collar union mentality that I can’t even express it anymore. I own a GMC and I thought I’d either switch to Ford or Toyota when the time came. Since then I’ve decided Toyota. I’m glad Ford didn’t take the bailout, but their union workers can kiss off. Avoid the unions like the plague.
Free Indeed on November 15, 2012 at 3:15 PM
Death by union
HotAirian on November 15, 2012 at 3:23 PM
.99 for a six pack of the little babies at the local cheap food emporium!
Freddy on November 15, 2012 at 3:28 PM
Absolutely. Buy NOTHING built by the greedy UAW. Greedy unions gave us four more years of Jackass. Let’s give them no business in return.
slickwillie2001 on November 15, 2012 at 3:38 PM
watertown on November 15, 2012 at 3:41 PM
We need a movement to identify which are and are not greedy-union made products and services. Some kind of label like the Kosher K.
slickwillie2001 on November 15, 2012 at 4:00 PM