Hostess is Toast

Discussion in 'Community Board' started by tvguy, Nov 16, 2012.

  1. The Mystery Machine

    The Mystery Machine Sunrise at my house. :+)

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    I have no idea but if I was a long term employee paying into the pension fund I would most certainly be scared of what is going to happen.:scared1:
     
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  3. Christopher Robin

    Christopher Robin DIS Veteran

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    To the bolded, absolutely incorrect.
     
  4. Sorsha

    Sorsha <font color=royalblue>People, don't be like the ch

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    I feel very very bad for the workers who will be out of work, especially right before Christmas. :( Not good timing.

    However, I will not miss the company at all. IMHO most of their products are disgusting; and super-over-processed white breads and snacks that are full of HFCS and other junk have contributed way too much to our nation's problems with obesity and diabetes.

    Also, because of board rules, I will simply state that I have no sympathy with huge companies that refuse to pay their workers a living wage or give them full-time hours or benefits. If a company cannot figure out a business model that allows them to take care of their own workers and still stay financially solvent, then they don't deserve to be in business. And that's all the further I will discuss it. :hippie:
     
  5. Princess Dolly

    Princess Dolly <font color=green>Unfortunately it encroached the

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    I admitted to taking liberty. Again the underlying sentiment is for workers to take less for the greater good, which I don't disagree with. I just find it ironic that there are times this is considered good and expected and then there are times when this is considered very bad and everything is going to heck. And then that "S" word gets slung around when it is inappropriate.
     
  6. Gumbo4x4

    Gumbo4x4 Note to the ladies who forgot to

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    I saw something about that as well - although, I thought it was pension money, not 401k. Regardless, if it happened, it's a real issue - but a separate issue.

    Unions have their pluses & minuses. Sometimes protecting the workers (being treated unfairly) is a good thing. Other times (worker is worthless), it's a bad thing. Ensuring that people who deserve a job keep it, good thing. Ensuring that their demands will bankrupt the employer, bad thing.
     
  7. Stitchfans

    Stitchfans Tres Charming

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    I love their cupcakes but haven't eaten any in ages since I have to be careful with chocolate. Such a shame. All those employees is the biggest shame. I really feel sorry for them.
     
  8. Princess Dolly

    Princess Dolly <font color=green>Unfortunately it encroached the

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    Interesting. Hostess is now controlled by a group of investment firms, including hedge funds Silver Point Capital and Monarch Alternative Capital.
     
  9. FireDancer

    FireDancer DIS Veteran

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    Absolutely. These union issues always end up with the "unions are the best thing ever" crowd against the "unions are ruining the country" crowd. The reality is in the middle. There are good things about them and bad things. Sometimes they help a situation and sometimes they hurt a situation.

    It appears in this situation they hurt it. I'm sure they were only one of the problems, I don't think it came down to only the baker's union, but it is better to be part of the solution than part of the problem, no?
     
  10. cornflake

    cornflake DIS Veteran

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    Ok, why is that interesting? They were in bankruptcy, were they not?
     
  11. Cannot_Wait_4Disney

    Cannot_Wait_4Disney Ok all you A cattle, get in ...

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    Hostess demise can be laid at the feet of way too much debt in takeover restructuring, horribly out dated products, and bad management. Seriously, their plan to save the company was
    Wait for it.
    Wait for it.
    BOOM!!!! BANANA FLAVORED TWINKIES!!!!! :lmao:

    And even as the company was crumbling under the weight of too much debt and slagging sales, and even as the unions that many are going to blame for all this were making concession after concession, the CEO got a 300% raise and the next top 4 executives received pay increases averaging 80%. If you want to actually build a baking business, you put someone with experience in charge. If you want to extract what you can out of a baking business regardless of the impact on the company itself, it's creditors or workers, you put "restructuring experts" and third tier managers with no experience in the industry in charge. And that's just what they did. Hostess could have survived if it had developed new products and marketed them. But nobody was put in charge that knew how to do that or even cared because there was no desire to do that. If the unions made any mistake it's that they actually thought the other side was bargaining in good faith when all along, they were not. The union could have caved on everything and it wouldn't have changed a thing. And at this point, there is no way the workers can even trust that management would have even kept to any contract they agreed to. They've broken them in the past. And now the union and the strike is being used for cover.
     
  12. donaldlovesdaisy

    donaldlovesdaisy DIS Veteran

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    Really I assuming from this post you have run many successful businesses?
     
  13. Christine

    Christine Would love to be able to sit on

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    I just don't get how this happens.
     
  14. SaraJayne

    SaraJayne <font color=red>Stop moving those smilies! <img sr

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    :thumbsup2:thumbsup2
     
  15. Gumbo4x4

    Gumbo4x4 Note to the ladies who forgot to

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    Doesn't make a lot of sense. From a practical standpoint however, $1 an hour for 18,000 people is a lot more expensive than a 300% raise for the boss. Not arguing right or wrong, just trying to put it in perspective.

    And if liquidation was indeed the company's plans all along, I still say the unions shot themselves in the foot by standing firm. At this point, it matter not if they trusted Hostess or thought they'd get robbed again down the road. If you're on a sinking ship, and you know it's sinking, you can try your hardest to keep it afloat long enough for a lifeboat to come by. Or, you can jump into shark infested waters and swim for it. Personally, I'm afraid of sharks.
     
  16. goofyintoronto

    goofyintoronto I really wanted to like it, but I didnt.

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    Just want to start off by saying i didnt read any of the previous posts....

    OMG I couldnt agree more. The company warned employees that if they go on strike, the company might not survive. Well they went on strike anyway and guess what? All you people are out of a job. You gambled and thought the company was bluffing about closing down? Well now all you suckers are out of a job. What good came out of the strike? NOTHING! No sympathy from me either.
    Totally agree. I'd rather see small bakeries succeed.

    I dont eat twinkies etc anymore, but im still sad to see them go. Such a shame.



    EDIT: Just read the below. I didnt know all that. Interesting. Thanks for posting.
     
  17. Princess Dolly

    Princess Dolly <font color=green>Unfortunately it encroached the

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    Corporate greed? I am shocked! And yes when you have hedge funds involved you know the liquidation is coming.
     
  18. dsneprincess

    dsneprincess DIS Veteran

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    This exactly!! I feel no sympathy for these people that walked out on their jobs. They made their beds, let'em lie in it.

    I do feel bad for the rest of us that will miss Hostess products & be forced to take care of a whole bunch more people with economic handouts. I personally don't think they should see a dime, but most will end up better off not working. Sad, what this country has become.
     
  19. JoiseyMom

    JoiseyMom <font color=orange>Have you had your SPANX today??

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    I am thinking there is a good chance some of these products will be bought by other companies. Hostess owned lots of brands, not just junk either. THey made Natures pride breads, and those had good ingredients, I really liked them.

    I can see Nabisco or someother company at least buying recipes. I can't see no more Twinkies (I havent eaten them in decades) or Yodels or devil dogs. I see them being made elsewhere.

    But the little ppl lose their jobs, and the hedgefund rich guys sell the company by the recipe and walk away even richer.
     
  20. usnuzuloose

    usnuzuloose DIS Veteran

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    Who knows it may make an increase for Little Debbie and make more jobs. It is hard when you work for a union. The top people of Hostess should have taken a decrease in the wages and bonuses. I have seen so many corporate top people get bonuses that are huge. And the workers wages never got an increase. I hope they all find jobs.
     
  21. Christine

    Christine Would love to be able to sit on

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    I seriously doubt that someone make a decent wage with decent healthcare benefits is going to be "better off not working."
     

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