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[Rondo2287]

Your right it was premature, lets everybody calm down and have  a beer summit

I can't tell if you're being sarcastic or not, but if the story ends with me getting a White House Honey Porter...well okay.

Not being sarcastic, I just think a beer summit is the best way to end any premature conclusions

So you're saying you're not pregnant, you just had the stomach flu?


No prob, babe! Beer summit!

Wouldnt the world be a better place?

[LooseCannon]

It sounds like this may have been Bain-style venture capitalism at work here.  Reportedly, the executives got some nice raises earlier this year, including the CEO getting a bump from 750K to $2.5m.

[Rondo2287]

It sounds like this may have been Bain-style venture capitalism at work here.  Reportedly, the executives got some nice raises earlier this year, including the CEO getting a bump from 750K to $2.5m.

It sounds like they need stimulus funds.

[Moranis]

Thus, the union essentially shot itself in the foot even if much of the former Hostess workers get hired on by the new entity, they will not be unionized. 

Disagree that the analysis is as simple as you are making it out to be. The unions are engaged in a repeated game. They lose on this one and Hostess management does as well. But, the unions gain bargaining power in future negotiations with other companies.

Hostess was the only unionized company in that field. 

[LooseCannon]

Hostess was the only unionized company in that field.

That's untrue.  Grupo Bimbo, a Mexico-based company who once tried to buy Hostess during its earlier bankruptcy and which owns brands such as Entennman's, Thomas (as in English muffins),  Sara Lee, and Brownberry, seems to be described as the biggest competitor to Hostess and it seems to be unionized.

[nickagneta]

The strike might have been the final straw that sent the company under but if the strike didn't happen, Hostess was going to go under sooner or later. Fattening snack food company in a world trending towards health consciousness that was being run poorly.

Sometimes bad companies just need to go out of business and sometimes and doesn't matter how it is done.

[Cman]

Hostess was the only unionized company in that field.

That's untrue.  Grupo Bimbo, a Mexico-based company who once tried to buy Hostess during its earlier bankruptcy and which owns brands such as Entennman's, Thomas (as in English muffins),  Sara Lee, and Brownberry, seems to be described as the biggest competitor to Hostess and it seems to be unionized.

Also, isn't it the Teamsters? They are involved in more than just baking.... so, I think my point about this being a repeated game holds.

In any case, I'm with nichagenta on this: the company was bound to fail sooner or later given the market trends. Plus, everything I've seen on this company was that there were a whole lot of things wrong with it other than "the union". 

[Brendan]

The strike might have been the final straw that sent the company under but if the strike didn't happen, Hostess was going to go under sooner or later. Fattening snack food company in a world trending towards health consciousness that was being run poorly.

Sometimes bad companies just need to go out of business and sometimes and doesn't matter how it is done.

This is refreshing to see, if only the crony capitalists in both parties would have followed this advice for the auto industry (circa 2009) and airline industry (circa 2002) and the financial industry (circa 2007). Bankruptcy provides correct protection and certainty for investors, controlled liquidation or reorganization processes, and all-in-all better outcomes than bailouts and interventions.

Capitalism requires that risk and reward be privatized. Unions shouldn't get special protection like they do, and IMO public sector unions should be illegal, but regardless of either of those positions, unions are highly incentivized to compromise with management in cases where bankruptcy is a real chance. And when they don't they bare a lot of the burden (like in this case where they unioned themselves right out of 18,000 jobs or so.) That's an OK outcome from my perspective.

(By the way, I've known the CFO for a very well known brand that went out of business via bankruptcy. And he made a lot of money. And people were ticked off "how unfair." Running a business that's going through a bankruptcy is VERY HARD. It's also hard to attract quality execs to businesses facing structural challenges. It's also damaging to the executives personal brand. BUT absent very good leadership, the company will almost certainly fail, and in bankruptcy a lack of good leadership will cost the owners of the business lots of money. I think it's a lot more fair to criticize the quality of the candidate being paid, then the actual amount it costs. There just aren't many execs that can competently manage this kinds of situations AND want to.)

[nickagneta]

The strike might have been the final straw that sent the company under but if the strike didn't happen, Hostess was going to go under sooner or later. Fattening snack food company in a world trending towards health consciousness that was being run poorly.

Sometimes bad companies just need to go out of business and sometimes and doesn't matter how it is done.

This is refreshing to see, if only the crony capitalists in both parties would have followed this advice for the auto industry (circa 2009) and airline industry (circa 2002) and the financial industry (circa 2007). Bankruptcy provides correct protection and certainty for investors, controlled liquidation or reorganization processes, and all-in-all better outcomes than bailouts and interventions.

Capitalism requires that risk and reward be privatized. Unions shouldn't get special protection like they do, and IMO public sector unions should be illegal, but regardless of either of those positions, unions are highly incentivized to compromise with management in cases where bankruptcy is a real chance. And when they don't they bare a lot of the burden (like in this case where they unioned themselves right out of 18,000 jobs or so.) That's an OK outcome from my perspective.

I agree with everything you said here. God, Brendan, is that a first?

[OmarSekou]

Serious questions: How long until Twinkies go off the shelves? How long do Twinkies last?

[thirstyboots18]

Serious questions: How long until Twinkies go off the shelves? How long do Twinkies last?

ha ha ha.  I told my husband to make a run on the local grocery stores and buy them all up.  The last forever, and in 100 years they may be worth big bucks.  He will probably have the only viable supply.

[thirstyboots18]

The strike might have been the final straw that sent the company under but if the strike didn't happen, Hostess was going to go under sooner or later. Fattening snack food company in a world trending towards health consciousness that was being run poorly.

Sometimes bad companies just need to go out of business and sometimes and doesn't matter how it is done.

This is refreshing to see, if only the crony capitalists in both parties would have followed this advice for the auto industry (circa 2009) and airline industry (circa 2002) and the financial industry (circa 2007). Bankruptcy provides correct protection and certainty for investors, controlled liquidation or reorganization processes, and all-in-all better outcomes than bailouts and interventions.

Capitalism requires that risk and reward be privatized. Unions shouldn't get special protection like they do, and IMO public sector unions should be illegal, but regardless of either of those positions, unions are highly incentivized to compromise with management in cases where bankruptcy is a real chance. And when they don't they bare a lot of the burden (like in this case where they unioned themselves right out of 18,000 jobs or so.) That's an OK outcome from my perspective.

I agree with every you said here. God, Brendan, is that a first?

This means I agree with both of you!  It just proves you should try hard not to make  political enemies, because you never know who's going to agree with you on a different subject.

[Brendan]

The strike might have been the final straw that sent the company under but if the strike didn't happen, Hostess was going to go under sooner or later. Fattening snack food company in a world trending towards health consciousness that was being run poorly.

Sometimes bad companies just need to go out of business and sometimes and doesn't matter how it is done.

This is refreshing to see, if only the crony capitalists in both parties would have followed this advice for the auto industry (circa 2009) and airline industry (circa 2002) and the financial industry (circa 2007). Bankruptcy provides correct protection and certainty for investors, controlled liquidation or reorganization processes, and all-in-all better outcomes than bailouts and interventions.

Capitalism requires that risk and reward be privatized. Unions shouldn't get special protection like they do, and IMO public sector unions should be illegal, but regardless of either of those positions, unions are highly incentivized to compromise with management in cases where bankruptcy is a real chance. And when they don't they bare a lot of the burden (like in this case where they unioned themselves right out of 18,000 jobs or so.) That's an OK outcome from my perspective.

I agree with everything you said here. God, Brendan, is that a first?

I always thought you had the capacity to learn   

[Bahku]

A world without Twinkies ...





... is a world gone mad!


 

[Redz]

The strike might have been the final straw that sent the company under but if the strike didn't happen, Hostess was going to go under sooner or later. Fattening snack food company in a world trending towards health consciousness that was being run poorly.

Sometimes bad companies just need to go out of business and sometimes and doesn't matter how it is done.

There is no good way to spruce up the Twinkie image to the health-conscious consumer (though I think they did offer a reduced fat one at some point).  A whole grain organic free range Twinkie just wasn't going to happen.