RIP Twinkies

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RIP Twinkies

Post by gman » Fri Nov 16, 2012 9:33 am

Twinkies Maker Hostess Going Out of Business

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” CEO
Hostess, the makers of Twinkies, Ding Dongs and Wonder Bread, is going out of business after striking workers failed to heed a Thursday deadline to return to work, the company said.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” Hostess CEO Gregory F. Rayburn said in announcing that the firm had filed a motion with the U.S. Bankruptcy Court to shutter its business. “Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”

Hostess Brands Inc. had earlier warned employees that it would file to unwind its business and sell off assets if plant operations didn't return to normal levels by 5 p.m. Thursday. In announcing its decision, Hostess said its wind down would mean the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores in the United States.

Hostess suspended bakery operations at all its factories and said its stores will remain open for several days to sell already-baked products.

The Irving, Texas-based company had already reached a contract agreement with its largest union, the International Brotherhood of Teamsters. But thousands of members in its second-biggest union went on strike late last week after rejecting in September a contract offer that cut wages and benefits. Officials for the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union say the company stopped contributing to workers' pensions last year.

A union representative did not immediately return a call from The Associated Press seeking comment on the company's announcement.

In an interview with Fox Business, CEO Gregory Rayburn said many workers had already crossed picket lines this week to go back to work despite warnings by union leadership that they'd be fined.

"The problem is we don't have enough crossing those lines to maintain normal production," said Rayburn, who first joined Hostess earlier this year as a restructuring expert.

Hostess said that production at about a dozen of the company's 33 plants had been seriously affected by the strike. Three plants were closed earlier this week.

The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade. The company cited increasing pension and medical costs for employees as one of the drivers behind its latest filing. Hostess had argued that workers must make concessions for it to exit bankruptcy and improve its financial position.

The company, founded in 1930, was fighting battles beyond labor costs, however. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating. Hostess also makes Dolly Madison, Drake's and Nature's Pride snacks.

If the motion is granted, Hostess would begin closing operations as early as Tuesday.

"Most employees who lose their jobs should be eligible for government-provided unemployment benefits," Hostess said.
I'm not even sure where to go with this. We're 10 days into President Obama's second term, and the hits just keep on coming.
I'm curious to see where the unemployment number ends up in the next few months. I would think it has to go up. If the middle east continues to heat up, I'm assuming it will negatively affect gas prices.
We could have elected a guy who for sure wanted to get this country turned around. He was definitely pushing for more American energy. I'm not sure what we have now. What happens when enough coal plants are closed that electricity prices go way up?
Business closures are happning left and right. Companies like Darden Restaurants, the parent company of Olive Garden, Red Lobster, and others are announcing they are slashing hours in response to Obamacare. Denny's is going further, and they are going to try adding a 5% surcharge to customer's bills; telling customers straight up that the extra cost resulting from Obamacare is being passed on to them. Even NBC has announced layoffs. I'm not feeling the magig these last few weeks. It doesn't look or feel as though America is coming back.
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Re: RIP Twinkies

Post by executioner » Fri Nov 16, 2012 10:06 am

gman wrote:
Twinkies Maker Hostess Going Out of Business

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” CEO
Hostess, the makers of Twinkies, Ding Dongs and Wonder Bread, is going out of business after striking workers failed to heed a Thursday deadline to return to work, the company said.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” Hostess CEO Gregory F. Rayburn said in announcing that the firm had filed a motion with the U.S. Bankruptcy Court to shutter its business. “Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”

Hostess Brands Inc. had earlier warned employees that it would file to unwind its business and sell off assets if plant operations didn't return to normal levels by 5 p.m. Thursday. In announcing its decision, Hostess said its wind down would mean the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores in the United States.

Hostess suspended bakery operations at all its factories and said its stores will remain open for several days to sell already-baked products.

The Irving, Texas-based company had already reached a contract agreement with its largest union, the International Brotherhood of Teamsters. But thousands of members in its second-biggest union went on strike late last week after rejecting in September a contract offer that cut wages and benefits. Officials for the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union say the company stopped contributing to workers' pensions last year.

A union representative did not immediately return a call from The Associated Press seeking comment on the company's announcement.

In an interview with Fox Business, CEO Gregory Rayburn said many workers had already crossed picket lines this week to go back to work despite warnings by union leadership that they'd be fined.

"The problem is we don't have enough crossing those lines to maintain normal production," said Rayburn, who first joined Hostess earlier this year as a restructuring expert.

Hostess said that production at about a dozen of the company's 33 plants had been seriously affected by the strike. Three plants were closed earlier this week.

The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade. The company cited increasing pension and medical costs for employees as one of the drivers behind its latest filing. Hostess had argued that workers must make concessions for it to exit bankruptcy and improve its financial position.

The company, founded in 1930, was fighting battles beyond labor costs, however. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating. Hostess also makes Dolly Madison, Drake's and Nature's Pride snacks.

If the motion is granted, Hostess would begin closing operations as early as Tuesday.

"Most employees who lose their jobs should be eligible for government-provided unemployment benefits," Hostess said.
I'm not even sure where to go with this. We're 10 days into President Obama's second term, and the hits just keep on coming.
I'm curious to see where the unemployment number ends up in the next few months. I would think it has to go up. If the middle east continues to heat up, I'm assuming it will negatively affect gas prices.
We could have elected a guy who for sure wanted to get this country turned around. He was definitely pushing for more American energy. I'm not sure what we have now. What happens when enough coal plants are closed that electricity prices go way up?
Business closures are happning left and right. Companies like Darden Restaurants, the parent company of Olive Garden, Red Lobster, and others are announcing they are slashing hours in response to Obamacare. Denny's is going further, and they are going to try adding a 5% surcharge to customer's bills; telling customers straight up that the extra cost resulting from Obamacare is being passed on to them. Even NBC has announced layoffs. I'm not feeling the magig these last few weeks. It doesn't look or feel as though America is coming back.
Going a step further is Applebee's CEO telling even their owner's that they are not to hire anyone to replace employees that have quit/fired, and if they do they will have to pick up the Obamacare costs and fines because Applebee's will not cover the costs; these new employees will not receive any type of retirement benefits. It will be up to each franchise owner to cover all these costs. I have a friend who is a long time manager for Papa John's and he has been told everyone's hours are to be cut(hourly workers), him and his assisant manager have been running deliveries this week because his delivery people's hires have been cut. He has noticed since just before the election that business has been off about 10%; This time of year is when business usually rises because of the holidays & football.
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Re: RIP Twinkies

Post by rexreed » Fri Nov 16, 2012 10:43 am

Thanks a lot Obama. Little did we know his true intentions were to save Chrysler, but destroy Twinkies.
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Re: RIP Twinkies

Post by executioner » Fri Nov 16, 2012 12:11 pm

I've never been a huge fan of Chrysler(I'm the Blue Oval guy) but did own a 1997 Dodge Caravan and I will have to say that I miss that van; we never really had any issues out of it, but the wife wanted something smaller.
I for one wish we didn't bail out any of these large corps like we did; these companies & bailouts were all totally backed by the unions and the unions were the main reason most were in that position in the first place. I think they all should have had to followed the same bankruptcy rules & regulations that all others have to follow, and if they make it than good for them and if not than it wasn't meant to be. Within five years you will have either GM or another big company coming back asking for even more.
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Re: RIP Twinkies

Post by gman » Fri Nov 16, 2012 1:04 pm

What is an American car anymore? Parts come from all over world, and so called foreign manufacturers have assembly plants here. I've always done well with Ford, and my first vehicle was a 72 Buick that could haul. I've never personally owned a Chrysler that wasn't a problem from the get go. I know a number of folks with a similar experience. I tend to want to avoid Chrysler for that reason, although if I could, I would buy a a top of line mint condition Daytona from say 1993 or so. I loved that car.
Our last purchase was a KIA, and we're thrilled with it. You get a lot more for your money going with the foreign makes.

It's really sad, in the case of Hostess, that more people chose to stick with the union rather than return to work, and now 18,000 plus people will be out of a job, and an American icon will be gone. As much as we'd like to, we can't live in Disneyland forever.
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Re: RIP Twinkies

Post by brent » Fri Nov 16, 2012 6:25 pm

No kidding Yamaha makes engines for Ford, Some Ford engines come from Germany. Toyota is tapping Subaru for motors and transmissions, Everything has something foreign in it. There are few to no 100% in house cars for the common working stiff. By the way, some of the brands that boast German engineering do not have Germans engineering. The companies are located in Germany. But engineering and in some cases manufacturing is not German at all.
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Re: RIP Twinkies

Post by rexreed » Sun Nov 18, 2012 11:15 pm

There is still a difference between a car built in the U.S. by a foreign based company and those from the big 3 ( of which one is partially owned by Italians) For decades the foreign based companies were being backed up by weak currency and/or their governments. This made for an unbalanced market for Ford, GM, Chrysler, and AMC (long gone). They bent until they broke, and that is a very simplistic description of the auto industry. Ford nearly bit the big one a couple years before GM and Chrysler were bailed out. Ford was able to restructure their debt before the economy tanked. GM was going strong and Chrysler was being pillaged by a venture capital group. Kia and Hyundai are still being backed by the South Koreans. Buy what you want, it is your choice, but don't be ignorant and think that there isn't money being sent to Korea and Japan when you purchase their products.
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Re: RIP Twinkies

Post by gman » Mon Nov 19, 2012 1:17 pm

Buy what you want, it is your choice, but don't be ignorant and think that there isn't money being sent to Korea and Japan when you purchase their products.
GM was bailed out by our tax dollars. I don't have the stats in front of me, but it was reported that GM now produces more cars overseas than in the U.S. There's audio of the the head of GM giving a speech in China earlier this year, where he is boasting about GM's production in China, and the plans to boost production over there. So, when you buy an American car, particularly one from a company bailed out by the American taxpayer, money is also going to other countries.
I heard a report today that the Hostess brands may live on, after they are sold and moved to Mexico.
Our wealth is being redistributed globally. President Obama is the latest redistributor in chief.
I might be way off, but I think that when the Gov't and Unions are driving the redistribution, it's intentional, but when the private sector does it, it's simply a response to the lousy U.S. business climate that the Gov't has helped to foster.
On a side note, I keep umming a song to myself that goes something like "I hear voices in my head, they talk to me, they understand, they counsel me". The voice keep saying, "Workers of the world, unite.".
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Re: RIP Twinkies

Post by brent » Mon Nov 19, 2012 9:07 pm

Jeep is moving production to China.
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Re: RIP Twinkies

Post by executioner » Tue Nov 20, 2012 8:15 am

brent wrote:Jeep is moving production to China.

From what I understand Jeep has a huge & growing market in China, and the Jeeps sold here in North America would still be built here in North America. Jeep actually still has a separate HQ & development site(from Chrysler) in Toledo, Ohio and also has a huge assembly line just down the street from there. I do believe they also have assembly lines in Canada & Mexico for the Western Hemisphere market.
Ford has closed up shop in England with their small work/cargo van and is sending all assembly of that product here to Wayne, Mi and will be built next to the Focus.


What does everyone here own & drive? We own the following the 2 Fords are paid off & the Camry will be next month. I've been very lucky because I've had very little issues out of all three with the Expedition having 230k miles on it and still doesn't drink or leak any oil.

02 Ford Expedition
03 Ford Focus
07 Toyota Camry
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Re: RIP Twinkies

Post by LivingRock » Tue Nov 20, 2012 1:04 pm

I own/drive a 2001 Toyota Corolla, and I would never drive anything else. Got 160k on her, barely a peck of rust and runs like a dream. Never have her in the shop except for routine stuff. Looks like new.
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Re: RIP Twinkies

Post by shawnpfan2010 » Tue Nov 20, 2012 4:43 pm

2000 Dodge Durango/ 2004 Nissan Maxima
Will never own another Chrysler product ever again. The Durango has been a problem ever since I bought it. The Maxima on the other hand has been a great car, yet to have any major problems with it. Both bought used btw.
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Re: RIP Twinkies

Post by brent » Tue Nov 20, 2012 5:05 pm

My daughter has a Maxima that is going on 20 years old. It leaks a bit of oil. No mechanic can find it. We smell it. Other than that, she has to put in the highest octane gas, and it will run forever.

I have had nothing but good luck with Toyota Celica/Supra, Mazda RX7 (87, the first year of the Porche type body style), Datsun 280ZX, etc. We have a Mercury Villager for the woman. It is the same as a Nissan model. No problems. This is the second one. She was a deer magnet twice in the first one, then finally a drunk magnet. We bought the second and it is doing well.

My middle daughter drives a Buick LeSaber, for the protection of her and everyone else. It's a big boat and she is such a skinny little thing.

We too have had Chrysler and Plymouth cars..the same model, just different names. They were the same thing as a Dodge Stratus, which everyone knows has warping head issues. Never buy a Dodge/Chrysler/Plymouth sedan. Neons and Stratus type cars are also known for HUGE transmission problems and recalls. FYI, Dodge Durangos and other small trucks have plastic gears. This allows them to strip when people are pulling too much load, and then the company can back out of the warranty. We have a friend that was a Dodge dealership mechanic and he used to buy Fords.

My fav car was my 72 Camero SS. It was a BAAAAAD boy....and so was I when I was in it.
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Re: RIP Twinkies

Post by executioner » Wed Nov 21, 2012 9:44 am

We owned a 1997 Dodge Caravan and really never had any trouble out of it, we sold it because the wife wanted something smaller hence the 03 Focus, but will tell you I miss the Caravan because the room & conveinence was awesome.
I've heard alot of bad things about the Chrysler sedans over the years, but everyone always rave about the vans. The new Stratus & 200 has an all new powertrain via Fiat, but I'm not sure how much better the quality is over the previous Chrysler stuff. Most people also like Honda, but the one Honda I owned I believe was a lemon(honda disagreed) and I pour alot of money into even while it was still under warranty. Right front brakes would start failing after 2k miles, they covered it the first time but after that they always wrote it off as driver's driving habits and would not cover it. After 30k and after being at the dealership 6 different times for the same issue I traded it in for the Camry. I will not buy another Honda, not really because of the car but because of the way I was treated at the dealership and also by Honda Corp.


My favorite car is 1967 Ford Mustang Fastback with the 289 V8.
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Re: RIP Twinkies

Post by rexreed » Wed Nov 21, 2012 12:37 pm

brent wrote:


We too have had Chrysler and Plymouth cars..the same model, just different names. They were the same thing as a Dodge Stratus, which everyone knows has warping head issues. Never buy a Dodge/Chrysler/Plymouth sedan. Neons and Stratus type cars are also known for HUGE transmission problems and recalls. FYI, Dodge Durangos and other small trucks have plastic gears. This allows them to strip when people are pulling too much load, and then the company can back out of the warranty. We have a friend that was a Dodge dealership mechanic and he used to buy Fords.
I had a 98 Stratus that was still going strong at 200,000 miles. Aside from brakes and belts it never had a major maintenance issue. Best car I ever owned and I wish that someone had not convinced me to sell it. I pretty much gave it away to a couple expecting their first kid that had no money. They could not believe the AC worked on such a cheap car (in Houston, A/C is a must) The Camry that replaced it had a few really dumb things go out- like the charcoal canister. Not a cheap part and not uncommon in Camry's, so I guess Toyotas are junk and Dodge is great. That is, if the only sample you take is what you personally experience.
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