Twinkie-pocalypse Averted?

[cornflake]

According to CNBC, the holdout union and Hostess have agreed to enter mediation to avoid the shutdown and liquidation of the company.

There's optimism in the boardroom, look -

 

[Jennasis]

 

[topolino]

As long as it's not Donald Fehr and Gary Bettman running the show in the boardroom, there might actually be some hope.

 

[tvguy]

I don't think Hostess had a say, the Judge said you can't go bankrupt until you have exhausted all options to resolve your financial problems. They had not gone to mediation yet.

 

[Buckalew11]

Bring back the foil!

 

[parrothead365]

I believe it was the unions that were holding out. This is a court ordered meeting. I would not hold my breath on an agreement.

 

[The Mystery Machine]

Sounds like they are going through the motions? I do not expect it to resurrect.

 

[TLSnell1981]

I believe it was the unions that were holding out. This is a court ordered meeting. I would not hold my breath on an agreement.

Let's hope a dose of reality, serves as a wake up call. They're getting a second chance to save their jobs, along with 13,000 others.

 

[foreUT]

Sounds like they are going through the motions? I do not expect it to resurrect.

Bleeding a million dollars a day and no one to pay for it, tends to be a problem.

http://news.yahoo.com/hostess-union-fail-reach-deal-mediation-002101478--finance.html

Hostess Brands Inc, the bankrupt maker of Twinkies, said on Tuesday that it failed to reach a deal in mediation with the Bakery, Confectionary, Tobacco and Grain Millers Union.
The company said it will have no further comment until a hearing scheduled for Wednesday before the U.S. Bankruptcy Court for the Southern District of New York.
A representative of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) did not immediately respond to a request for comment.
The ailing company, which also makes Wonder Bread and Drake's cakes, sought permission from bankruptcy court on Monday to liquidate its business, claiming that its operations were crippled by the bakers' strike and that winding down was the best way to preserve its dwindling cash.

Aside from its unionized workforce, analysts, bankers and restructuring experts have said that a fleet of inefficient and out-of-date factories has also eaten up costs. They have said the brand names were likely to be more valuable once they were separated from the factories and sold to non-union competitors.
Bankers have said rivals including Flowers Foods and Mexico's Grupo Bimbo were very likely to be interested in parts, but not all of, the brands. Neither company could be reached for comment. Private equity firms are also interested.
Sun Capital Partners is interested in bidding for all of Hostess, according to a source familiar with Sun's plans, and Metropolous & Co is also interested, according to Daren Metropolous, a principal at the firm.

Sun Capital, which has repeatedly been mentioned as interested in continuing the company intact, including the current union contracts, is owned by Marc Leder, who has his own interesting history.

 

[TLSnell1981]

So sad, another 18,500 on unemployment.

 

[snarlingcoyote]

The executives can't afford to keep a unionized workforce, but can happily give themselves big bonuses when the company is failing? Pretty sure the top officers are trying to kill this company. I predict mediation will fail spectacularly and they'll blame the workers, but watch where the big money from this goes. . .

 

[tvguy]

The executives can't afford to keep a unionized workforce, but can happily give themselves big bonuses when the company is failing? Pretty sure the top officers are trying to kill this company. I predict mediation will fail spectacularly and they'll blame the workers, but watch where the big money from this goes. . .

Devils advocate here. You HAVE to pay executives more for them to stay and try and save a company that is on the verge of failing, otherwise they bailout.

 

[Tinker'n'Fun]

Our morning news said that talks last night confirmed that the company was done for good!

 

[The Mystery Machine]

Devils advocate here. You HAVE to pay executives more for them to stay and try and save a company that is on the verge of failing, otherwise they bailout.

To throw on an additional quote from the "church lady" sans picture....

How convenient.

 

[TLSnell1981]

No profit, no investors..means no company. Hostess isn't a charity.

 

[wiigirl]

Our morning news said that talks last night confirmed that the company was done for good!

There is still have hope:

Nationalize the Twinkie

 

[Albort]

Devils advocate here. You HAVE to pay executives more for them to stay and try and save a company that is on the verge of failing, otherwise they bailout.

not to mention they are paid only $1 so far and with the executive payout in the bankruptcy case, they each get about $90,000 when everything gets liquidated.