Hostess, maker of the Twinkie, pushed into liquidation by Private Equity firm and Unions

  • Posted by a hidden member.
    Log in to view his profile

    Nov 16, 2012 11:23 PM GMT
    Ironically, the private equity firm is run by a prominent Democrat with a shareholder in Hostess that includes Dick Gephardt.

    http://www.zerohedge.com/news/2012-11-16/hostess-liquidation-curious-cast-characters-twinkie-tumbles
  • Posted by a hidden member.
    Log in to view his profile

    Nov 16, 2012 11:44 PM GMT
    After reading a lot of articles on this I hope the public backlashes against the unions. They ruined a company and cost 19k jobs for their own interest. Even the teamster union was against what they did.

    A real shame.
  • conservativej...

    Posts: 2465

    Nov 16, 2012 11:49 PM GMT
    riddler78 saidIronically, the private equity firm is run by a prominent Democrat with a shareholder in Hostess that includes Dick Gephardt.[/cite]


    icon_smile.gif

  • Posted by a hidden member.
    Log in to view his profile

    Nov 16, 2012 11:55 PM GMT
    Chainers saidAfter reading a lot of articles on this I hope the public backlashes against the unions. They ruined a company and cost 19k jobs for their own interest. Even the teamster union was against what they did.

    A real shame.


    *laughing at Riddie siding with the Teamster Union, that he hates*
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 12:04 AM GMT
    wonder what's gonna happen to all the twinks out there....
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 12:05 AM GMT
    Aristoshark saidFor all the political bloviating, Hostess themselves has admitted that the unions aren't the problem.

    The problem is that far fewer people eat that crap anymore. In a world where 1/2 the country are trying to eat healthier and the other half have become food snobs who won't touch anything that isn't organic or artisanal, the market for all those kinds of things is dropping radically. If you read anything more than the headline, you'd see that this is their second trip to bankruptcy court, the first time being back in 2004.

    But hey, why not use the occasion to bash unions? It makes them feel better and they could be reasonably certain that simpletons like ol' Clem here would actually believe it. He believes anything as long as it confirms his loony worldview.
    Right, Clem?


    QFT.

    ...and this: "Following its first bankruptcy filing in 2004 members of the BCTGM took huge wage and benefit concessions while 21 plants were closed and thousands of jobs eliminated. Predictably, after pocketing worker concessions, the company then gave lavish bonuses and pay raises to executives and made big payouts to the hedge funds that owned Hostess."

    icon_wink.gif
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 12:20 AM GMT
    ^^what are you guys talking about? Hostess said that the strike directly lead to the liquidation of the company.

    Was it a stellar company before the strike? No it wasnt. But when the top execs waive their salary, you don't strike at an 8% wage decrease.

    Yes, their bakers are so much better off with their no job icon_rolleyes.gif
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 12:30 AM GMT
    I'm sure the strike was the last straw. But that company is making products that nobody wants to eat. They should revamp and make antifreeze, since those are the ingredients they use now.
  • GQjock

    Posts: 11649

    Nov 17, 2012 1:21 AM GMT
    59065_10151315904196153_630530638_n.png
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 1:35 AM GMT
    This is insane..they also make Drakes...we are losing a piece of Americana. I still indulge in some of these things from time to time. Hopefully someone picks this company up because it would be a sad day to lose products like this that we all grew up eating
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 2:03 AM GMT
    Chainers said^^what are you guys talking about? Hostess said that the strike directly lead to the liquidation of the company.

    Was it a stellar company before the strike? No it wasnt. But when the top execs waive their salary, you don't strike at an 8% wage decrease.

    Yes, their bakers are so much better off with their no job icon_rolleyes.gif


    Actually it's a lot more than 8% once all the kinds of cuts are factored in.

    Here, let's take a real world snap-shot from ground zero

    " Mike Hummell, a receiving clerk and a member of the Bakers' union working in Lenexa, Kan., said he was making about $48,000 in 2005 before the company's first trip through bankruptcy. Concessions during that reorganization cut his pay to $34,000 last year, earning $16.12 an hour. He said the latest contract demands would have cut his pay to about $25,000, with significantly higher out-of-pocket expenses for insurance."


  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 2:56 AM GMT
    Squeeze the money out while you can.
    http://www.sacbee.com/2012/11/13/4983174/hostess-continues-pattern-of-misinformation.html#storylink=cpy
    BCTGM members are well aware that as the company was preparing to file for bankruptcy earlier this year, the then CEO of Hostess was awarded a 300 percent raise (from approximately $750,000 to $2,550,000) and at least nine other top executives of the company received massive pay raises. One such executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256.


    Brian Driscoll, CEO, around $750,000 to $2,550,000.

    Gary Wandschneider, EVP, $500,000 to $900,000.

    John Stewart, EVP, $400,000 to $700,000.

    David Loeser, EVP, $375,000 to $656,256.

    Kent Magill, EVP, $375,000 to $656,256.

    Richard Seban, EVP, $375,000 to $656,256.

    John Akeson, SVP, $300,000 to $480,000.

    Steven Birgfeld, SVP, $240,000 to $360,000.

    Martha Ross, SVP, $240,000 to $360,000.

    Rob Kissick, SVP, $182,000 to $273,008.
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 3:02 AM GMT
    jerseywoof saidThis is insane..they also make Drakes...we are losing a piece of Americana. I still indulge in some of these things from time to time. Hopefully someone picks this company up because it would be a sad day to lose products like this that we all grew up eating
    The brand names (Twinkie, Ding Dong, Wonder bread, etc) will be bought by someone who can keep them alive (and possibly improve them with healthier ingredients and processing methods).

    We won't see them die. We'll see them increase in price and become less available at certain locations. This is good thing for the fattening of the US.

    The worst part is the immediate part...thousands of people temporarily out of work.
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 3:02 AM GMT
    Aristoshark saidFor all the political bloviating, Hostess themselves has admitted that the unions aren't the problem.

    The problem is that far fewer people eat that crap anymore. In a world where 1/2 the country are trying to eat healthier and the other half have become food snobs who won't touch anything that isn't organic or artisanal, the market for all those kinds of things is dropping radically. If you read anything more than the headline, you'd see that this is their second trip to bankruptcy court, the first time being back in 2004.

    But hey, why not use the occasion to bash unions? It makes them feel better and they could be reasonably certain that simpletons like ol' Clem here would actually believe it. He believes anything as long as it confirms his loony worldview.
    Right, Clem?


    Dollars to doughnuts the brands will be bought and rebuilt into profitable ones at more efficient bakeries. The reason the company went down was that the union wouldn't agree to cuts in wages in pensions so they lost it all.

    The company was purchased by a private equity firm - which attempted to restructure and reorganize but wasn't able to overcome the legacy costs. Now that it's in liquidation, the pension obligations and the union contracts are no longer an issue.

    Then again, it's rubes like you who wanted to believe that Bain was responsible for that steel company despite the industry. So Jeff, unfortunately for you, the straw that really broke the camel's back that they chose liquidation instead of a restructuring was the unions.

    Also if you really think that no one eats twinkies any more, as much as I hate to say it, visit Walmart a bit more.
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 3:03 AM GMT
    jerseywoof saidThis is insane..they also make Drakes...we are losing a piece of Americana. I still indulge in some of these things from time to time. Hopefully someone picks this company up because it would be a sad day to lose products like this that we all grew up eating


    I wouldn't be worried - as paulflexes notes, a more efficient firm will pick up the brands which really are still worth something.
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 3:06 AM GMT
    meninlove said
    Chainers saidAfter reading a lot of articles on this I hope the public backlashes against the unions. They ruined a company and cost 19k jobs for their own interest. Even the teamster union was against what they did.

    A real shame.


    *laughing at Riddie siding with the Teamster Union, that he hates*


    No, didn't side with the Teamsters at all - now that I know more, I hope both sides fail. Couldn't happen to nicer people. It's just a bit ironic.
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 3:19 AM GMT
    yourname2000 saidBut our little Hong Kong OP, Clem, has no comment on the clarification that the unions had already taken it up the ass, and were only being asked to spread further while it was the executives who were lining their pockets.

    Just the kind of one-sided dreck we've all come to expect from this piece of shit poster on RJ.


    Ah coming from a stellar example of class like yourself, I'll take that in stride, thanks. I did note that the company was run by a prominent Democrat - and I did also note that now that I know more, I think there ought to be a pox on both their houses.

    Nevertheless, not that you really asked, but when a company approaches bankruptcy like it has here, you do see key members of management get retention bonuses. Optically, it looks bad, but if these members of management are able to save the company, it's a smaller price to pay. In this case, they failed. Ultimately, I fault both management and workers unless you have legacy costs like defined benefit plans that are significantly underwater.

    Incidentally, I pity you. You're a small minded, pitiful man who seethes with hate. You've attempted to intimidate me so that you can avoid realizing that there's more than one side to an issue, but that's failed. Instead all you're left with is proof for all to see what a stupid shallow man you are. icon_wink.gif
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 3:41 AM GMT
    yourname2000 saidBut our little Hong Kong OP, Clem, has no comment on the clarification that the unions had already taken it up the ass, and were only being asked to spread further while it was the executives who were lining their pockets.

    Just the kind of one-sided dreck we've all come to expect from this piece of shit poster on RJ.


    Racist turd. This was actually a civil conversation going on until you posted this.
  • thadjock

    Posts: 2183

    Nov 17, 2012 3:52 AM GMT
    q1w2e3 saidSqueeze the money out while you can.
    http://www.sacbee.com/2012/11/13/4983174/hostess-continues-pattern-of-misinformation.html#storylink=cpy
    BCTGM members are well aware that as the company was preparing to file for bankruptcy earlier this year, the then CEO of Hostess was awarded a 300 percent raise (from approximately $750,000 to $2,550,000) and at least nine other top executives of the company received massive pay raises. One such executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256.


    Brian Driscoll, CEO, around $750,000 to $2,550,000.

    Gary Wandschneider, EVP, $500,000 to $900,000.

    John Stewart, EVP, $400,000 to $700,000.

    David Loeser, EVP, $375,000 to $656,256.

    Kent Magill, EVP, $375,000 to $656,256.

    Richard Seban, EVP, $375,000 to $656,256.

    John Akeson, SVP, $300,000 to $480,000.

    Steven Birgfeld, SVP, $240,000 to $360,000.

    Martha Ross, SVP, $240,000 to $360,000.

    Rob Kissick, SVP, $182,000 to $273,008.


    pigs at the trough,

    it's endemic throughout the corporate world. screw the workers to line management's pockets with gold. we're becoming russia with the number of billionaire oligarchs (romney et.cie) running the show.

    time to tax the fukers back to reality. and stop redistributing wealth from guys making $16/hr to CEO's
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 3:57 AM GMT
    thadjock said
    q1w2e3 saidSqueeze the money out while you can.
    http://www.sacbee.com/2012/11/13/4983174/hostess-continues-pattern-of-misinformation.html#storylink=cpy
    BCTGM members are well aware that as the company was preparing to file for bankruptcy earlier this year, the then CEO of Hostess was awarded a 300 percent raise (from approximately $750,000 to $2,550,000) and at least nine other top executives of the company received massive pay raises. One such executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256.


    Brian Driscoll, CEO, around $750,000 to $2,550,000.

    Gary Wandschneider, EVP, $500,000 to $900,000.

    John Stewart, EVP, $400,000 to $700,000.

    David Loeser, EVP, $375,000 to $656,256.

    Kent Magill, EVP, $375,000 to $656,256.

    Richard Seban, EVP, $375,000 to $656,256.

    John Akeson, SVP, $300,000 to $480,000.

    Steven Birgfeld, SVP, $240,000 to $360,000.

    Martha Ross, SVP, $240,000 to $360,000.

    Rob Kissick, SVP, $182,000 to $273,008.


    pigs at the trough,

    it's endemic throughout the corporate world. screw the workers to line management's pockets with gold. we're becoming russia with the number of billionaire oligarchs (romney et.cie) running the show.

    time to tax the fukers back to reality. and stop redistributing wealth from guys making $16/hr to CEO's


    Except it's not "reality". Noteworthy from an article in April that contradicts the press release put out by the union (dated April 9):

    http://online.wsj.com/article/SB10001424052702303772904577333602976713584.html?user=welcome&mg=id-wsj

    The chief executive of Hostess Brands Inc. said he is slashing executive compensation in the aftermath of creditor allegations that the company may have pushed management's salaries higher in the months leading up to its Chapter 11 bankruptcy filing in an effort to skirt bankruptcy rules.

    Gregory F. Rayburn, a restructuring expert who took the helm at Hostess last month, said in an interview that the top four executives working under him had agreed to cut their annual salaries to $1 until the company emerges from bankruptcy or Dec. 31, whichever comes first. The executives—Gary Wandschneider, John Stewart, David Loeser and Richard Seban—had seen their salaries increase by 75% to 80% last July, at a time when the baking company had already hired restructuring lawyers, according to creditors.

    Further down the totem pole at the Twinkie maker, four additional executives agreed to return to the salaries they were receiving before the July increase.


    The BCTGM seems to have omitted this. I wonder why... Oh, that's right, it's because they're the ones being blamed for the company going under because they wouldn't agree to any further concessions.
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 4:19 AM GMT
    Riddler -

    Your side lost the election. Not that you could vote.

    All you're doing is proving what a big fucking liar you were when you claimed you were fine with private company unions.

    You're not a free market libertarian. You're a corporate fascist.

    We're very clear on that. icon_rolleyes.gif
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 4:24 AM GMT
    Christian73 saidRiddler -

    Your side lost the election. Not that you could vote.

    All you're doing is proving what a big fucking liar you were when you claimed you were fine with private company unions.

    You're not a free market libertarian. You're a corporate fascist.

    We're very clear on that. icon_rolleyes.gif


    I am still absolutely fine with the existence private company unions - as I've pointed out to mil. The fact that I think they will continue to go extinct because they are more parasitic than cooperative in a world that demands more of the latter than the former, doesn't mean that I don't support their existence.

    What you choose to believe I am is not my concern. You've proven yourself to be absurdly delusional. Certainly, your supposed "side" won - but I don't think the US will be better off economically because of it, quite the opposite. icon_rolleyes.gif

    You know you're on the losing end of the argument though Christian when all you can do is attack me personally on things that aren't even true. I can see though how offended you are that I posted facts that so directly contradict the press release that much of "your side" seems to be pushing online.
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 4:26 AM GMT
    Just claim you aren't gunna do it after you already have.

    Lie, cheat, steal, and keep 'em poor...that's the Republican way, right Riddler?


    Well, atleast Hostess EVPs and SVPs won't be able to ride off into the millionaire sunset on the backs of their hard workers anymore. Serves 'em right. And let every other greedily ran company face the same fate.

    I'll say it, bring on the fall. 'Cus I'd rather we all be in chaos then those filthy fucking pigs who try and screw people over every chance they get continue to successfully use, abuse, and take advantage of the working class.

    Here's a big fuck you to every single one of you who think it's acceptable what big box companies do to their workers. Or should I say neo-indentured servants.

  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 4:28 AM GMT
    yourname2000 said
    DontQuoteMe said
    yourname2000 saidBut our little Hong Kong OP, Clem, has no comment on the clarification that the unions had already taken it up the ass, and were only being asked to spread further while it was the executives who were lining their pockets.

    Just the kind of one-sided dreck we've all come to expect from this piece of shit poster on RJ.


    Racist turd. This was actually a civil conversation going on until you posted this.

    Exactly what is racist about my post, lol? And really, coming from you, Southbeach? ---claims of racism are laughable. icon_lol.gif

    I think it's great that you come to the defense of this piece of shit....your reputation on here says more about the kind of person Riddler is more than my words ever could....so keep talking, asswipe. icon_wink.gif


    Huh - so it occurs to me - you've been drinking again haven't you Dave? Again all that anger seething through... your poor heart (and liver)
  • Posted by a hidden member.
    Log in to view his profile

    Nov 17, 2012 4:29 AM GMT
    ConfederateGhost saidJust claim you aren't gunna do it after you already have.

    Lie, cheat, steal, and keep 'em poor...that's the Republican way, right Riddler?


    Well, atleast Hostess EVPs and SVPs won't be able to ride off into the millionaire sunset on the backs of their hard workers anymore. Serves 'em right. And let every other greedily ran company face the same fate.

    I'll say it, bring on the fall. 'Cus I'd rather we all be in chaos then those filthy fucking pigs who try and screw people over every chance they get continue to successfully use, abuse, and take advantage of the working class.

    Here's a big fuck you to every single one of you who think it's acceptable what big box companies do to their workers. Or should I say neo-indentured servants.



    If that's the Republican way, does that make the leadership at these unions Republicans? icon_eek.gif