Judge OKs Hostess Liquidation Plan
Expect Twinkies brand to be sold
By Newser Editors and Wire Services
Posted Nov 21, 2012 4:53 PM CST
People wait in line to get into the Hostess Thrift Shop in Ogden, Utah on Friday.   (AP Photo/Standard-Examiner, Kera Williams)

(Newser) – A bankruptcy court judge today approved a request by Hostess Brands to begin winding down its operations. The ruling came after the maker of Twinkies and other snack cakes failed in last-ditch negotiations to end a strike by its second-largest union. Hostess now has the green light to terminate the jobs of its 18,000 workers without risking legal action, and to sell off its brands. In court, Hostess said it needed to begin the liquidation process quickly to take advantage of outside interest in its brands, which a banker said could fetch up to $2.4 billion.

"This is a once-in-a-lifetime opportunity to get iconic brands separate from their legacy operators," said a banker during the bankruptcy-court hearing in White Plains, New York. Click to read how one columnist thinks the villain in all this is the Teamsters union.

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Showing 3 of 51 comments
Twiny
Nov 22, 2012 10:35 AM CST
And so yet another private equity firm buys up a healthy company, burdens it with all the debt they possibly can, steals hundreds of millions of dollars from the employees self-funded pension fund, rewards the company execs with outlandish pay raises and takes the company into bankruptcy, where, with the blessing of the court, they can expect to reap a windfall of some 2.4 billion dollars by selling off their valuable brand names. Ah, Romney would be proud...
Mr.LarryG.
Nov 22, 2012 10:34 AM CST
Executive Rayburn let out the dirty secret,,,"these old plants." meaning instead of investing in thecompany, they spent the profits on corporate jets, big bonuses, high salaries, top loaded management,,,,the competition with its new equipment is lowering costs driving the Ferrari while Hostess by not modernizing is driving the Model T. Whose operaing costs will be lower? of course they blame the union, neglecting the fact that pay concession, vacation give backs, and crewsize concessions were made in return of a promise of modernization, which never came about,,,,it happened in the steel industry too,,,,,the Americn way---blame the worker,,,,,,
Burrito7
Nov 22, 2012 8:45 AM CST
Can anyone please explain why this has been front-page headline news for weeks? Companies go under all the time (especially when they make a crappy product that sickens people). Is it our national obsession with trash talk and junk food? Is it nostalgia for a distant past when pregnant women smoked and a Twinkie was part of a balanced breakfast? Though it's sad that so many people are losing their jobs, the world will be a better place when all manufacturers of junk food go away. Bye-bye.