Death of the Twinkie?

[REWahoo]

Better stock up - it may be goodbye forever to Twinkies and HoHo's.

Hostess Brands closing for good due to bakers strike - Nov. 16, 2012

[timeasterday]

I haven't had a Twinkie for at least 10 years. Might have to have one before they are all gone.

[Midpack]

I hadn't either, so I went out and bought a 2-pack a few months ago when this possibility first surfaced. It was pretty awful, and DW declined even tasting hers, it went in the trash uneaten.

Look at the bright side, you could go out and buy a box of Twinkies today and it would still be "fresh" in 30 years...might even be a collectors item.

[samclem]

The situation seems crazy. I'll bet someone will buy the brand names (not just the Hostess ones, but Wonder Bread and Nature's Pride) --they are worth something due to decades of brand building. The new owners will operate profitably and workers will have jobs again. But they probably won't be the same workers. Dumb, dumb, dumb.

[JPatrick]

Quote:

Originally Posted by REWahoo Better stock up - it may be goodbye forever to Twinkies and HoHo's. Hostess Brands closing for good due to bakers strike - Nov. 16, 2012

Pretty darn depressing, but I'd bet the Twinkie brand will live on. Perhaps a guvmint deal involving moving the assembly line to General Motors..

[JDARNELL]

Quote:

Originally Posted by samclem The situation seems crazy. I'll bet someone will buy the brand names (not just the Hostess ones, but Wonder Bread and Nature's Pride) --they are worth something due to decades of brand building. The new owners will operate profitably and workers will have jobs again. But they probably won't be the same workers. Dumb, dumb, dumb.

I agree. Someone will pick up the name, recipes, etc in the liquidation process, and take the company private.

JDARNELL

[REWahoo]

Quote:

Originally Posted by JPatrick Pretty darn depressing, but I'd bet the Twinkie brand will live on.

Maybe, but if not, buying up a supply could be a way to diversify your AA. With the growing trend of decriminalizing marijuana,
values could go through the roof.

[MichaelB]

Quote:

Originally Posted by samclem The situation seems crazy. I'll bet someone will buy the brand names (not just the Hostess ones, but Wonder Bread and Nature's Pride) --they are worth something due to decades of brand building. The new owners will operate profitably and workers will have jobs again. But they probably won't be the same workers. Dumb, dumb, dumb.

Already happened in 2009. This would be the second time.

[timeasterday]

I predict they'll be bought by a bimbo, Grupo Bimbo that is.

[Purron]

Classic twinkie scene from Ghostbusters

Ghostbusters - Big Twinkie - YouTube

[MichaelB]

Quote:

Originally Posted by Purron Classic twinkie scene from Ghostbusters Ghostbusters - Big Twinkie - YouTube

Ahh, yes.

"Tell him about the Twinkie
What about the Twinkie?"

[Midpack]

Just seemed fitting...

[MasterBlaster]

Yet another sad American Corporate story...

Hedge funds takeover and pilage a viable company.

Union workers then won't work for industry-competive wages.

The business goes down the tubes...


This story reminds me of the plight of Eastern Airlines.... Another tragic American story.

[ziggy29]

The brands will be purchased by a business who will hire folks for $8 per hour and no benefits to make them. And the cost probably won't go down.

[ERD50]

Quote:

Originally Posted by ziggy29 The brands will be purchased by a business who will hire folks for $8 per hour and no benefits to make them. And the cost probably won't go down.

And when the price of some product or service you buy goes down, you decide to return the difference back to the provider, rather than pocket it and call yourself a 'smart consumer'?

I'm sure they will charge whatever the market will bear for Twinkies.

.... I skimmed the article, some interesting points - Hostess has been in/out of bankruptcy, it sure sounds like they just can't afford to pay union wages/benefits and stay in business. They have an unlikely supporter in that:

Quote:

In September, one of its major unions, the International Brotherhood of Teamsters, voted narrowly to accept a new contract with reduced wages and benefits. The Bakers' union rejected the deal, ... The Teamsters union, which represents 7,500 Hostess workers, has been sharply critical of the smaller Bakers' decision to strike, saying it was forcing the company to the cusp of liquidation. ...

So if they want to save those jobs, seems like some compromise is in order. If they don't want to compromise, then they should not whine when they get replaced by people who might willingly prefer an $8 no benefit job (or whatever) over unemployment.

Better yet, they should use their organisational powers to start their own company, start making competitive products that people want to buy, and pay great wages and benefits. No one is stopping them.

-ERD50

[MasterBlaster]

Quote:

Originally Posted by ERD50 If they don't want to compromise, then they should not whine when they get replaced by people who might willingly prefer an $8 no benefit job (or whatever) over unemployment. Better yet, they should use their organisational powers to start their own company, start making competitive products that people want to buy, and pay great wages and benefits. No one is stopping them. -ERD50

The story isn't as simple as you posted...

Evidently the hedge funds took so much money out of the company and loaded it up with debt that it just couldn't function anymore. The unions, as usual, weren't flexible enough to keep it going.

There is lots of blame to go around on both sides.

[MichaelB]

Of course, it is possible that after the first bankruptcy and reorganization concessions were made and the owners decided they wanted more. Because this is a private company there is no public reporting, so we will never know what brought them to this point.

If the investors are heavily leveraged, the lenders and employees lose but the owners may not.

[samclem]

Quote:

Originally Posted by MasterBlaster The story isn't as simple as you posted... Evidently the hedge funds took so much money out of the company and loaded it up with debt that it just couldn't function anymore. The unions, as usual, weren't flexible enough to keep it going. There is lots of blame to go around on both sides.

At least no one else is being asked to bail out all the folks who took risk in various ways. The pain is residing where it should.

Everyone is getting their just desserts. (sorry-couldn't help it.)

[GrayHare]

Old twinkies don't die, and they don't just fade away. This science teacher has had one in the classroom for over 30 years http://usatoday30.usatoday.com/tech/...-twinkie_x.htm

Then there are Tests With Inorganic Noxious Kakes In Extreme Situations http://www.twinkiesproject.com/

[ziggy29]

Quote:

Originally Posted by ERD50 And when the price of some product or service you buy goes down, you decide to return the difference back to the provider, rather than pocket it and call yourself a 'smart consumer'?

I know you take it upon yourself to be this board's "staunch defender of the free market" -- but just because someone says they don't like the economic trends the "free market" is taking us doesn't mean they are advocating that government intervention you are so keen in arguing against.

Just a thought.